Those condition don't apply in Europe, and the US had to go through a bloody civil war on this way to it. The notion that a common market with a common currency and open borders has failed and failed so badly that nationalism in the pejorative sense of xenophobia is on the rise.
Counterpunch
Germany Signals a Historic Shift From Austerity That Could Upend the Economy of Europe
Marshall Auerback
Counterpunch
Germany Signals a Historic Shift From Austerity That Could Upend the Economy of Europe
Marshall Auerback
The idea that Germany has been particularly austere (in the sense of implementing insufficient aggregate demand) is not supported by its inflation figures, which have been pretty close to the EZ target, i.e. just under 2%. Then Marshall Auerback says:
ReplyDelete“The usual German phobias about inflation can also be addressed if the balance of the government spending is focused on expanding the productive capacity of the economy so as to ensure that essential goods can continue to be provided absent price rationing (or martial law).” So Germany should expand production just of “essential” goods like food and shelter?
Germany like other developed countries has got past the point where it produces only “essentials”: it can afford a range of non-essentials.
And as regards the typical middle size engineering firm for which Germany is famous, how exactly are politicians and bureaucrats going to increase production there? Do we take it the average politician or government bureaucrat knows more about producing car gear boxes that an engineering firm that has been producing them for decades?
Lots of micro jobs in Germany. That is part of austerity in Germany.
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