In Spain the supposedly left of centre government has been punished by the electorate.
In Germany it's right of Centre Merkel who is being punished.
In both cases the electorate is not being perverse - they're coming to the same conclusion. Governing parties across Europe are saying much the same thing: that we must cut government spending and if we do then for reasons that no one can rationally explain this act resulting in vast numbers of people becoming unemployed will massively increase confidence and the private sector will jump for joy and lead us to nirvanna.
Except as Paul Krugman notes, there is no evidence this perverse lohgicv works.
There's ample evience it does not.
And so governing parties are being punished.
As will there succe
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Richard, you’re getting a bit incoherent – with rage, I should think!
Neo-liberalism doesn’t work. There’s little evidence anywhere of neo-liberalism working. All it has done so far in Ireland, Greece and Portugal (and soon Spain) os make a bad situation worse. In fact, in the case of Argentina, when they defaulted to the IMF, their economy picked up within months. It is a shame Ireland, Greece and Portugal are all part of the ECB and not independent because breaking away and setting up their own currencies is going to be that much harder.
I have to say though, if a couple more countries are thought to need a bailout in Europe, that will more than likely be the end of the eurozone.
Neo-liberalism doesn’t work and has never worked. In fact, when countries like Argentina defaulted on its IMF loan in 2002, its economy started to recover within months.
Countries like Greece. Ireland and Portugal (and soon Spain) have all been bailed out and their situations have been made progressively worse, not better.
Because these countries are all part of the ECB, it would be tremendously difficult for them to break free and form their own sovereign currencies.
However, it would only need a couple more countries needing bailouts to totally collapse the eurozone anyway.