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View Diary: The U.S. has learned nothing from Europe's deadly obsession with austerity (105 comments)

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  •  Greece (0+ / 0-)

    This is a serious misinterpretation of history here. Then in reality if the greek government would have been honest they never would have been in the Eurozone - as they never fulfilled the criteria to join.

    Instead they forged the statistics (with help of Goldman Sachs apparently) to be able to join the Eurozone.

    This fueled half a decade of  a boom cycle , because of low interest rates - they never would have had outside of the Euro and, surging wages (prices I dont know but probably as well) and massively surging private and government debt even in better economic times.

    In my opinion the whole western world made the same mistake. AFAIK Keynes theory consisted of 2 Parts - spend to grow  in times of economic trouble and repay your debt in good times. The second part is nearly universally ignored because its much easier to spend the money to please the citizens or lower taxes instead of repaying the debt.

    Now the whole House of Cards collapses and even if I see the problems austerity causes and find the austerity course wrong - even if we spend ourselves out of teh crisis - I would not bet on the population/government to see the need to repay debt in times that are better economically.  

    "How many years since you found yourself staring at an endless sky? " VNV Nation - Endless Skies

    by Kavalor on Mon Apr 08, 2013 at 05:38:08 AM PDT

    [ Parent ]

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