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The New York Times reports on the latest draft budget from Greece:

The draft budget spells out about $10 billion in spending cuts and savings for 2013. About one-quarter of that would come through reductions in civil servants’ salaries and social welfare benefits, and about 15 percent through cuts in spending on health, defense and local authorities, the government said.

….The draft budget is expected to be revised significantly because it must be approved by the country’s troika of foreign lenders — the European Commission, the European Central Bank and the International Monetary Fund — before it can be submitted for a parliamentary vote. The troika is insisting on further cuts in the public sector — including laying off public servants, a political third rail in Greece and other European countries — while the coalition government has been pushing back.

….The negotiations are taking place against a backdrop of unrelenting, depression-level conditions in the Greek economy, which the draft budget predicted would contract by 6.5 percent this year and by 3.8 percent in 2013 — far more than the troika’s earlier estimates and about 25 percent below its peak before the crisis struck. The budget says unemployment is expected to rise to 24.7 percent from 23.5 percent this year.

Just for perspective, this is about a 10% cut in total government spending. The U.S. equivalent would be a cut of about $350 billion in federal spending and another $200-300 billion in state and local spending. All against the backdrop of an economic catastrophe that rivals the Great Depression in scope and will be made even worse by the proposed spending cuts.

If you happen to be wondering why Greeks are rioting in the streets, this is why. You might be too if this were happening to your economy.

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THE TRUTH...

is the first thing despots go after. An unwavering commitment to it is probably what draws you to Mother Jones' journalism. And as we're seeing in the US and the world around, authoritarians seek to poison the discourse and the way we relate to each other because they can't stand people coming together around a shared sense of the truth—it's a huge threat to them.

Which is also a pretty great way to describe Mother Jones' mission: People coming together around the truth to hold power accountable.

And right now, we need to raise about $400,000 from our online readers over the next two months to hit our annual goal and make good on that mission. Read more about the information war we find ourselves in and how people-powered, independent reporting can and must rise to the challenge—and please support our team's truth-telling journalism with a donation if you can right now.

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