Prior to the release of growth statistics in the middle of August there was widespread expectation that a sustained eurozone recovery would at last be verified. However, the numbers showed a result familiar to long suffering commuters all over Europe – “we regret that this service is delayed”. This is far from the first such […]
German Vice-Chancellor Says Tsipras Is Threat To “European Order” – And He Is Right
Faced with a decision that would conflict with its promises to the Greek people no matter what choice it makes, the Syriza government has taken the obvious step required in a democratic society – it will ask its citizens for guidance by holding a referendum. It appears that many commentators on both the left and the […]
This is Recovery? Germany, ‘Powerhouse’ In Need Of A Jump-Start
The German government has been a strong supporter of austerity programmes, arguing that the associated goals of deficit and debt reduction provide the best, if not the only, route to economic recovery in Europe. Some writers reach back to the hyper-inflation of the 1920s to explain this faith in the virtues of belt-tightening. Recent release […]
Why The Structural Deficit Does Not Exist
Deficit Politics A few days ago the Italian government objected to the way that putative technocrats at the European Commission calculated their country’s “structural deficit”. To all but the few familiar with the arcane intricacies of the Maastricht Criteria, the Six-Pack and the Two-Pack the objection might seem esoteric at best. However, it has the […]
The EU Recovery That Never Was
Economic recovery in the Eurozone is not delayed. It is non-existent. The Financial Times for the first day of October carried several articles assessing the European economies, written as if a prize would go to the most pessimistic — stagnation and decline of EU manufacturing, the European Central Bank initiates asset purchases to prevent deflation […]
Inequality is Falling Globally! (And Similar Nonsense)
I bet you think that the rich are getting richer and the poor poorer. A few well-known facts might lead you to this conclusion. For example, in the United States income after tax per household is now over 100% greater than forty years ago (1972), while average weekly earnings in the private sector are 14% […]
Why Is Capital In The 21st Century (C21C) Such A Success?
About a month ago — this is a true story — after a meeting of Economists Against Austerity, I hailed a taxi in Westminster (the workers of the underground system were on strike). During the ensuring discussion with the driver I mentioned that I taught economics at the University of London before retiring. The driver then […]
Chancellors, Fools And The UK Recovery
I grew up in Texas where state and local judges are elected, not unusual in the United States. In most states minimum legal qualifications are required for a person to stand for judge. Not so in Texas, where we had the saying: in some places you need a law degree to run for judge, but […]