I am sick and tired of hearing people talk about austerity and debt reduction as if that’s the magic way to pull out of this recession.
Folks, Germany, the champion of the austerity movement, just announced a rise in their unemployment rate today. For the first time since 2009, the German unemployment rate is rising. What happened to your precious austerity programs Germany? Hmmm?
You see folks, this is Europe’s austerity recession. It is man made and it is the result of austerity programs.
Why should you and I in the U.S. care? Because a recession in the world’s fourth-largest economy (Germany), combined with a recession in the sixth-largest economy (Britain), combined with a recession in the fifth-largest economy (France), combined with a recession in the third-largest economy (Japan), combined with the current slowdown in the world’s second-largest economy (China), means trouble for the world’s largest economy, the U.S.
In this episode I look at the very complicated subject of austerity and explain it in an easy way. I also take to task those who think austerity is good and something the U.S. needs.