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Veskit posted:Lastly, the only way you can be austere is if you have export surplus because you have to not only produce, This is the central contradiction within the that Mark Blyth highlights in Austerity: History of a Dangerous Idea. To boil down a very complex and compelling argument to it's core, Germany's post-war aversion to inflation and centralizing power within the government or cartels allowed them to quickly rebuild an extremely competitive manufacturing sector by keeping wages and inflation artificially low. This led to a fantastic export-based economy but that lesson is impossible to apply to Greece/the rest of the EU because someone needs to buy what you're selling. EDIT: It should be noted that as soon as the going got tough Germany abandoned the strict austerity policy and developed their social safety net.
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Jul 16, 2015 04:36
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you also have to sell your goods to someone
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Bwee posted:Can someone please explain the pro-austerity argument, I understand that it's a "rich get richer" thing but they can't sell it like that Debt relief should be so painful as to avoid the "moral hazard" of taking out loans you can't pay. The actual economic justifications seem to have mostly disintegrated on contact with the real world.
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Jul 16, 2015 05:18
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