The Effects of a Supply Side Policy in the Greek Economy by Integrating the Greek Christian Orthodox Approach

In this article, we are trying to integrate the Greek closed market economy with the components of the monetarist aggregate expenditures model in an effort to serve the poor and financially vulnerable. The purpose is to foster employment and increase job opportunities. There should be equal job opportunities for everyone. This policy focuses on increasing the potential level of output in the economy, namely, the aggregate supply. This approach is based on cutting taxes to encourage every person to work harder. In addition, this policy decreases interest rates to foster the growth of local industries or create more investment. This policy is based on economic growth and is supported by the classical and monetarist economists. Classical economists support the view that taxes should be very low and the effort is rewarded based on hard work. It is worth to mention, that this will happen only after establishing full capacity and full employment. In other words, initially, through the intervention with the government and the reserve bank will increase investments and gross national savings from 80% to 98% of GDP. The purpose is to make sure that there are sufficient jobs, reserves and money to help the low and middle – classes. At the same time, it will increase revenues from the accumulated national savings and the return of investments that the government did in the past. As there will be decrease of investments at this stage, the government will increase substantially the base and interbank interest rates of national and personal savings. The aim will be to help the households that have accumulated wealth and are not working to cover their daily expenses