I’ve seen this depressing news in the last couple of days. Relentless austerity in Europe has brought on an economic depression. Krugman has more:
Simon Wren-Lewis thinks that the European embrace of austerity was a historical contingency; basically, the Greek crisis strengthened the hand of the austerians at a critical moment. I don’t think it’s that easy to explain; my sense was that there was powerful anti-Keynesian sentiment in Europe even before the Greek crisis, that macroeconomics as Anglo-Saxon economists understand it never had a real constituency in Europe’s corridors of power.
I think of it more as a war zone.
Based on what I learned yesterday on the changing nature of employment, ageism and the effect of Obamacare on spending, I can’t help but see another economic downturn in this country as well. People have to have money to spend to make the economy grow. The warriors may soon have a pyrrhic victory on their hands because deflation tends to spread without economic interventions.
So does unrest, violence and instability. Like in Ferguson.
So not good.