The Impact of the Financial Crisis on Social Redistribution: Causes, Results and Ethical Review

Abstract

The article demonstrates the manner in which the global financial crisis, which began in the middle of 2008, affected the development of social relationships in peripheral countries of the European Union. The emergence of the 2008 financial crisis caused longterm upheaval in these countries. The text accentuates two countries for the purpose of an apt comparison – Ireland and Iceland. The main theme is illustrated through quantitative indicators in the budgets of these countries such that we demonstrate the budget structure change for financial expenditures (interest) due to the growth of the public debt which was spent on restoring the banking system at the expense of social and investment expenditures.