Once more into the breech. It doesn’t work. Austerity doesn’t work. It is failing in Europe.
“... Italy isn’t unique: disreputable politicians are on the rise all across Southern Europe. And the reason this is happening is that respectable Europeans won’t admit that the policies they have imposed on debtors are a disastrous failure. If that doesn’t change, the Italian election will be just a foretaste of the dangerous radicalization to come….” Paul Krugman
Italy is a mess right now, just like Spain and Greece. There’s only on real reason – Austerity. It doesn’t work. It is a disaster.
“…Some headlines have even suggested that Italy may need to call another flash election, if the outcome is too chaotic. This will give an ulcer to world markets, which are hoping that a stable left-center government will be formed, and continue on existing reform paths, which have helped bring national borrowing costs down. Remember, Italy has the larest stock of debt in all of the Eurozone (and the third largest in the world). Controlling borrowing costs is a huge globla/economic issue. Furthermore, a rejection of the reform path reprsents a slap in the face to Angela Merkel and other European elites in Brussles….”
Paul Krugman also wrote what should prove to be a lesson to the right, Paul Ryan, Eric Cantor, John Boehner, and the tea parties. Unfortunately, one wonders if they know how to read at this point.
“...But the confidence fairy was a no-show. Nations imposing harsh austerity suffered deep economic downturns; the harsher the austerity, the deeper the downturn. Indeed, this relationship has been so strong that the International Monetary Fund, in a striking mea culpa, admitted that it had underestimated the damage austerity would inflict.
Meanwhile, austerity hasn’t even achieved the minimal goal of reducing debt burdens. Instead, countries pursuing harsh austerity have seen the ratio of debt to G.D.P. rise, because the shrinkage in their economies has outpaced any reduction in the rate of borrowing. And because austerity policies haven’t been offset by expansionary policies elsewhere, the European economy as a whole — which never had much of a recovery from the slump of 2008-9 — is back in recession, with unemployment marching ever higher….”
What if the right is wrong?
It doesn’t work. It’s that plain and simple. One upon a time, the GOP was not the part of I’m with stupid. Today, though – anything goes – as long as it does not require common sense and the use of a brain!