The latest – EIB Investment Report 2017/2018 – published last week by the European Investment Bank tells anyone who cares to take those Europhile Rose Coloured Glasses off for just a second how deep the failure of the European policy making structures are and how long the negative impacts of those failures will resonate. This is the true ‘burden for our (their) grand kids’ sort of stuff. In claiming they had to run tight fiscal policy biased towards surpluses to avoid forcing the future generations to carry an unfair burden, these European policy makers and leaders have done exactly the opposite, as predicted – they have created an appalling future for their youth and their children to follow. The whole European monetary experiment is a failure and is beyond reform. It needs to be scrapped, national sovereignty restored and people within their own countries left, through democratic institutions to determine how the public sector operates in their best interests. The Troika technocrats should be led out to pasture. And, to the Europhile Left: take of your rose coloured glasses.The actual issue is the availability of real resources in the present and for the future, access to which determines a society's standard of living.
The investment ratio is the proportion of Gross Domestic Product accounted for by Gross Capital Formation and indicates how much of the current production each nation is allocating to expanding productive infrastructure.
Potential GDP and hence longer-term growth is driven by capital formation. A nation that is not investing in its future productive capacity will see declining productivity growth, falling standards of living and leave its grandchildren materially deprived....Bill Mitchell – billy blog
Massive Eurozone infrastructure deficit requires urgent redress
Bill Mitchell | Professor in Economics, University of Newcastle, New South Wales, and Director of the Centre of Full Employment and Equity (CofFEE)
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