The German representative on the board of the European Central Bank (ECB), Jörg Asmussen, says that the debate on growth versus austerity is the "wrong debate" since "we [who?] need both." Of course what he means by growth measures is labor market reforms, meaning more flexibility to fire workers (yes with more than 20% of unemployment in Greece and Spain, and double digits for the eurozone it seems that firing workers is really hard in the old continent). That would supposedly reduce the cost of workers, i.e. lower wages, and, as a result firms will hire more workers, even if nobody is buying their goods. And you wonder why things are the way they are in Europe?Read it at Naked Keynesianism
Newspeak, Europe and economics
by Matias Vernengo | Associate Professor of Economics at the University of Utah
This is a test of who is going to blink first, the neoliberal masters or the oppressed serfs, whom the masters are determined to wage discipline.