Ambrose Evans-Pritchard reminds me of an only-slightly more intelligent Debbie Wasserman-Schultz. He’s kind of like the Movie Critic syndicated in the ATL Airport Newspaper. Without fail, if he hated a movie, I loved it. If he loved it – it’s was an exercise in tedium, to me.
Ambrose is the same way. If you don’t really have economic or fiscal opinions – read Ambrose’s writing. Then, believe the exact opposite of what he says. In typical fashion, he says that austerity is to blame for the widening depression in the Euro Zone.
I would counter that there have been no austerity measures taken in the Euro Zone. Thus, what we are seeing evinced in the Eurozone is not a failure of austerity – but the logical result of having prolonged the suffering of their ailing economies, by not allowing the forces of economic law to play themselves out.
Put simply, you cannot continue to spend more than you produce, in perpetuity. It is a recipe for economic catastrophe. We’ve done the same thing here. We have all doubled-down on failed socialist policies when we should have made massive & extremely painful cuts to social spending in the very beginning.
The strategy of triple-barrelled contraction across a string of inter-linked countries has been the greatest policy debacle since the early 1930s. The outcome over the last three years has been worse than forecast at every stage, and in every key respect[...]
The North has been engulfed at last by the contractionary holocaust it imposed on the South. French car sales crashed 19pc last month, even before its fiscal shock therapy — 2pc of GDP next year. The Bundesbank admitted on Friday tore up its forecast on Friday. Germany itself is in recession.
The youth jobless rate has reached 58pc in Greece, 55.8pc in Spain, 39.1pc in Portugal, 36.5pc in Italy, 30.1pc in Slovakia, and 25.5pc in France, with all the known damage this does to the life-trajectory of the victims and the productive dynamism of these economies.
EU policy elites blame “labour rigidities”. The United Nation’s economic arm UNCTAD counters that the EU demand for “wage compression” is itself perpetuating the crisis.
Oh, the UN blames trying to cuts wages. That’s definitely the group of experts I’d look to for advice. Ha!