The problem is that Greece imports about 50% of their food (and several other goods), so the consequences of drachma are going to go way above expensive iPhones - the food prices will surge, hurting the poorest the most.
Moreover, for Greece to be a viable destination for export markets, they will need to place significant penalties on importing anything for consumption at all. Of course, rising food cost is more alarming than high import duties but it seems that taxes on import for consumption are very likely.
The rhetoric against austerity seems to be that we don't want to hurt the people (especially the economically disadvantaged) but I don't see a bright future in the near-term whichever way the Greeks vote. (I know, this is such a terrible thing to say. Good thing I am not in politics.)
Wat? Why would they care to be "a viable destination for export markets"? Why would they care whether there are still some rich folks around who want to buy iPhones? Things like this make me wonder where people got their economics education. I hope I really misunderstanding something here.
Yes high food prices are a problem but without tyrannical corruption like we see in Egypt this problem fixes itself over time.
"Austerity" seems like a red herring to me. The Germans were only too happy about Greek entitlements when they were driving Greek borrowing. Now that they're shutting off the tap (and why now rather than five years ago?), the Greeks themselves will figure out how to distribute the food. I'm sure they'll come up with something, and that plan will have come from Athens rather than Brussels or Frankfurt.
Also much of anger on the street has been due to lower living standards (euphemistically referred to "internal devaluation") So a true devaluation via an independent drachma won't go over well either.
Of course, the rich keep their money far away from Greece. It's the masses who will suffer.
Worse, any political instability will cause more problems for their critical tourism industry.
