Economic Crisis and Public Sector

Students: Natalia Iasonidou 2390 Marianna Efstathiou 2381 Konstantinos Kalaidzidis 2161 Myrto Georgopoulou 2357

Content.1. Introduction2. What does “economic crisis” means?3. How did the debt started to form?4. What does the public sector incudes?5. The global economic crisis.6. Disadvantages of the public sector.7. How the financial crisis effect the public sector and the

economy?8. How can pubic sector lead to economic growth

What does “economic crisis” mean?• Economic crisis its situation in which a country experiences a

sudden fall caused by a financial crisis.

How did the debt started to form?

• In 1920 the year when was introduced to the public instalment buying and credit cards.

• Debts was started to form.• Financial crises are based on

the same principals.

What does the public sector incudes?

• The public sector includes general government, public corporations and organizations.

Public sector

General Government

Public services

Global economic crisis

• The crisis first strikes USA in 2007. • In 2008 the crisis spread in European countries such us UK, German

and Denmark.

Disadvantages of the pubic sector.• Large size• Costly• Money is not effectively spent.• Funds are not invested in competitive projects• Bureaucracy• Corruptness

How the financial crisis effect the public sector and the economy?

• High rates of unemployment

• Lower salary• Bank loans• Decrease of the

retirement benefits• Higher taxes

The decrease of the employment rate in public sector; pre-crisis and post-crisis.

Productivity.

Average Real Wages of employees of Greece.

EURO

What can help?• Taxes system• Decrease of the size• Productive• Export of products • Stinger penalties• Exploitation of the

goods of the country.

References.• http://www.investorwords.com/3947/public_sector.html• http://ftp.iza.org/dp4948.pdf• http://www.ebooksmagz.com/pdf/the-public-sector-in-the-cri

sis-352501.pdf• http://www.cbc.ca/news/business/pension-crisis-a-global-pro

blem-1.2478858• http://whatis.techtarget.com/definition/public-sector• http://www.tovima.gr/finance/finance-news/article/?aid=257

482• http://prowthisi.blogspot.gr/2010/05/blog-post.html• http://www.ineobservatory.gr/sitefiles/files/report4.pdf• Annual macroeconomics database