It looks like European leaders have finally come to the realization that “expansionary austerity” is a myth.
A draft of the European Union summit meeting communiqué calls for ‘‘growth-friendly consolidation and job-friendly growth,’’ an indication that European leaders have come to realize that austerity measures, like those being put in countries like Greece and Italy, risk stoking a recession and plunging fragile economies into a downward spiral.
“We believe that a reform process based on a pillar of fiscal austerity alone risks becoming self-defeating, as domestic demand falls in line with consumers’ rising concerns about job security and disposable incomes, eroding national tax revenues,” S.&P. said.
Other analysts concur, and some highlight the need for those few nations with room to maneuver to stimulate demand.
Now if we could just get the Europeans to teach Scott Walker and the other Tea Party idiots something about economics, maybe we could turn our Wisconsin’s economy around too.
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