What is the reason behind Greece's Economic Collapse?

Hello all, the question I have to ask is what is the reason behind Greece's economic collapse.





From what I understand, the most prominent and most common reason is that Greece was paying far to much in terms of social securities and benefits then it could afford to spend, and as such, it eventually collapsed. This, along with levels of corruption in the government and other such factors.





However, I have read an economic stratfor report by George Friedman that states that there is another interesting perspective (mind you, he acknowledges the former one as well, and does not lean to any one side, he is unbiased). This one from the Greeks point of view (and one that is shared by a couple of other countries, many former Yugoslav's, and other Balkans). It states that the Germans rigged the European Union in their favor. Germany is the third-largest exporter, after China and the United States. By forming a free trade zone, the Germans created captive markets for their goods. During the prosperity of the first 20 years or so, this was hidden beneath the general growth of the European Union. But once a crisis hit, the inability of Greece to devalue its money, which, as the euro, was controlled by the European Central Bank- and the ability of Germany to continue exporting without any ability of Greece to control those exports exacerbated Greece's recession, leading to a sovereign debt crisis (why buy Greek merchandise when you can buy high quality German products, since they don't have any tariffs or tax's for a free trade zone).





Anyway, that is the second opinion. Do you think this opinion is in some ways true? What do you think?





The Longer the answer, the better :)





Thanks|||No I don't think it's true.





Firstly, the fact that Germany is more productive, or produces goods that customers prefer to Greek goods, is not an unfair rigging of the European Union. Indeed it only shows a mentality on the part of the Greek government that it is entitled to something for nothing, which gels with the first analysis.





Secondly, forming a free trade zone does not create "captive markets". No-one has a gun at their head forcing them to buy German goods. They do so because they prefer them, all other goods and their relative prices considered. Again it shows Greece's entitlement mentality that they think "*because" freedom to buy or not buy Greek goods, *therefore* unfairness", the idea being that if people were forced or hornswoggled into buying Greek goods by tariffs or taxes or other coercive measures, *that* would be fair.





Thirdly, supposing the producers of one country are outcompeting another, that doesn't mean the only response to "devalue its money". Again, it shows an attitude on the part of the Greeks that they should be entitled to jiggery-pokery, without which they couldn't possibly be expected to make their own way in the world under their own steam. An entitlement mentality.





Fourthly, underlying the analysis is the assumption that of course Greece should be able to fleece its own taxpayers, and everyone else in the EU, to pay for governmental programs, as if such programs are sacrosanct.





In a word, the reasons behind Greece's economic collapse is: socialism.





"Government is the great fiction by which everyone tries to live at the expense of everyone else."


Bastiat|||it's a bogus analysis.

what does Greece produce except some produce (olives, cherries, etc.), and a few other things not worth mentioning?|||overspending, property bubble and cannot live with the facts.