Austerity Can Kill You – Domenico Nuti – Social Europe Journal

Subregions of Europe (UN geoscheme)

Subregions of Europe (UN geoscheme) (Photo credit: Wikipedia)

Fiscal policy

Fiscal policy (Photo credit: Wikipedia)

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This is a MUST READ article if you want to understand what’s wrong with excessive austerity. The author is

Professor Emeritus at the University of Rome ‘La Sapienza‘, Italy.

via Austerity Can Kill You – Social Europe Journal.

Regular readers of the blog will know that I am strongly of the opinion that policy-makers in Washington, London and Berlin have been excessively conservative in using Keynesian interventions to stimulate economic growth causing enormous unnecessarily unemployment and hardship. In the case of Berlin, German policy has prevailed in Europe, dominating both fiscal policy and monetary policy;  this austerian policy from Germany is directly responsible for prolonging the extreme, and prolonged, economic crisis in Southern Europe. Finally, because of political goals in Europe to protect the conceptually weak Euro, normal economic policy options are not available to governments in Southern Europe.

Sooner or later, something will give, in my view.

Let me turn the argument towards an open question:

Do you think that the policies of excessive austerity will be reversed by peaceful means, or possibly by war, civil disruption or other breakdown?

 

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3 responses

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