There is a lot of tension in the markets as Greece continues to struggle through a financial crisis with fears of defaulting on debt. Creighton University economist Ernie Goss says this will have an impact on the U-S economy.
Goss says, “As they move closer to default on their bonds investors flee those bonds and head to the U-S raising the value of the dollar. Wanting to get rid of euro’s increases the demand for the dollars and as the dollar goes up and that pushes our manufactured and agriculture goods making them less competitive abroad.”
Goss also believes that it is just a matter of time before Greece actually does default. Other European countries again bailed Greece out of their financial difficulties but they have been doing that for several years. He says the only way Greece can work out of their financial problems is through reforms, something their people doesn’t want.
Goss says there are several issues Greece needs to address. He says people there retire at age 60 and the country is spending too much money on retirement plans. He says many people there are not paying their taxes because they are encouraged not to.