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Europe: Growth vs. Austerity

May 9 2012 at 8:54 AM
Bob  (no login)

 

With the election of the new French President, Hollande, I hear that he wants to take France toward more "growth" and away from the austerity measures that Germany has been promoting. Same in Greece, and Spain, and I'm sure a few other EU countries.

Question: Does anyone oppose "growth"? If growth growing an economy were as easy as wanting it, I'm sure that none of these European countries would be facing their current dilemma. Maybe these new leaders are referring to something akin to the "stimulus" that the Obama Administration has pursued: Borrowing more money for projects that get more people working again and improve infrastructure. I think such borrowing/spending can be a temporary relief but not a long-term solution. I agree with the startement, "You can't borrow your way to prosperity" -- it does not work for individuals, families, communities or countries. (Don't want to refer too much to the U.S. situation here, as I want to focus upon Europe . . and want to avoid setting Nat off on the "It's all Bush's fault" diatribe).

If, as appears to be the case in Europe, countries are not seen as a good risk and cannot borrow money, or under as favorable terms as they used to, then what do they do to "promote growth"? How do you grow a struggling economy without spending more money?

Marseil -- any thoughts on this? Please respond . . or you may hear me return to bitching about women again! happy.gif

 
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  1. Austerity vs. growth - Marseil on May 11, 2012
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  3. Republicans should worry - Nat on May 11, 2012
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