Austerity Measures Only Lead to More Bailouts.... So Who's Going to ...
Don’t let the title fool you here. I am in no way condoning the profligate spending and absurd debt levels that comprise the welfare economies of Europe (and most of the developed world for that matter).
However, the idea that somehow imposing austerity measures will work on the PIIGS, which are already watching their economies go down the tubes, is outright insane. These countries are broke. Trimming spending here and there doesn’t do anything when you’re sporting Debt to GDP levels over 160% (over 300% when you include unfunded liabilities).
In the case of Greece in particular, one has to wonder if the austerity measures (especially those coming out of Germany) are in fact just a means of forcing Greece out of the Euro without explicitly demanding it.
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