So what could Europe do instead of austerity? Here are five alternative policies that various experts have suggested that the euro zone could pursue instead, and a sixth that no one wants:
13 plus ones
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- Is that the same Krugman who about a year ago prescribed austerity for Europe? (While recommending inflationary spending in the US, of course, because that's what the Democrat Party, which he never disagrees with, wants to do.)
One policy missing in the list is massive deregulation. Besides piles of debt to finance overspending, growth in Europe (and elsewhere) is stifled by millions of pages of legislation accumulated over decades. Europe could create growth easily by putting the axe in it, and allowing people to work, consume and invest how they want, and not be forced to allocate their resources to special interest groups.May 7, 2012
- Whenever I hear cutting stiffling govt regs, it always comes as a general cure-all without much more discussion than that. Do you have specific examples as to what should be cut and how much that would save ? in numbers more exact than 'lots' or 'could be millions'. Also keep in mind that the crash of 2008 was the result on lack of regulation of CDO and residential mortgage markets. Large banks who said they could handle issuing no money down low documentation loans and they didn't need the government putting restrictions on who they loaned out money to.May 7, 2012
- May 7, 2012
- Valid point, it was the lack of regulations, particularly in the US which cause our current troubles. If you look at the UK, where regulations on how banks can seize properties, it can take them months to do so, and trust me, if the bank make a single mistake judge will force them to start from the beginning of the process, one bank kept on making errors by the time they could seize the property the couple were both working and able to start paying back they did, the bank lost about 10k in lawyer fees, the couple fees were paid for by a charity, we have avoided an housing crash an I believe that we have done that by making it easier and cheaper for the banks to come to a deal with the person owing them money than them trying to seize property. As I understand it in America it often only take five minute appearance in front of a judge and the property is handed back to the bank.
We are in a debt crisis and it not just European governments that have piled up the debts, so has the populations of Europe. It will take time to pay this off but we cant pay off if our economies continue to contract.
The best way to grow an economy would be through infrastructure projects, such HS2 and investing in Broadband infrastructure in the UK.
Also investing in projects such as Skylon, the probe we sending to Jupiter, Galileo GPS system and other.
No as ever explain to me why Greece cant default on its debts and still stay in the EurozoneMay 7, 2012
- I like the first paragraph from number five the most. It makes sense to actually unite the countries within the European Union. When we were forming our union we looked to Great Britain, among many other civilizations throughout history. Europe would be wise to use the United States, and all other examples of what had worked in history...and what hadn't. But this current example of the European Union is little more than window dressing...it is no union.
As I mentioned, I like number five...
_5) The euro zone, as we’ve seen, is made up of a bunch of wildly disparate countries. German workers are much more productive than Spanish workers, for instance. And that makes it hard for Spain to compete as long as it’s using a currency, the euro, that’s better-suited for more productive workers in Germany.
One idea, then, has been for the euro zone to do what the United States does and redistribute resources from rich to poor..._
WHAT! Using the United States as a model for uniting the countries would be a fine idea. Rather than look to recent U.S. examples of redistribution. I would argue to look further back in our history, back to the beginning.
A Union is not about redistribution of anything...it is about utilization of resources. Use what the people or the land in that area has an aptitude for. If it doesn't seem to have a use, then you establish one. An example would be promoting crop production, livestock...promote your people...promote your land. If manufacturing is the thing of the people in a certain region, then establish/refine that. If there is no use seen in the people or land of a certain region you can try to establish growth in this area by concentrating like minded businesses mixed with research facilities.
Build an environment that promotes opportunity.May 7, 2012
- Once again you speak great sense... I hope some of the top 5 are adopted.May 7, 2012