SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Politics : View from the Center and Left
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Mary Cluney who wrote (178331)12/30/2011 3:19:07 PM
From: Steve Lokness  Read Replies (1) of 543041
 
<<<<So the real test of Keynesian economics hasn’t come from the half-hearted efforts of the U.S. federal government to boost the economy, which were largely offset by cuts at the state and local levels. It has, instead, come from European nations like Greece and Ireland that had to impose savage fiscal austerity as a condition for receiving emergency loans — and have suffered Depression-level economic slumps, with real G.D.P. in both countries down by double digits. >>>>

The logic here blows me away!
Greece and Italy's problem stem from not spending too little - that's absurd. Annnnnd yet that is the only conclusion one can draw from Krugmans silly comparison as to which way is right - spend more or spend less. Both Greec and Italy are in trouble for one single reason; they spent too much. They lived beyond their means and that, as happens every time, eventually led to a point where the rest of the world became skeptical of their ability to pay it back and so demanded more of an interest rate premium. That premium pushed up the cost to the respective governments that now is putting fear into every bankers eyes.

If Europe spirals into economic bad place, it is not because Greece and Italy spent too little, it is because they borrowed to live today on money they wanted to borrow tomorrow - and couldn't.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News