Sunday, February 19, 2012

The wages of "contractionary expansion"

This quote by an unemployed British youth may be an appropriate reflection of the mood of the moment across much of Europe as governments pursue "contractionary expansion" - aggressive austerity campaign in an effort to lower public debt and fiscal deficit, and thereby boost growth.

"If you are not working, in training or in college, you might as well be a thief — employers just do not take you seriously. At some point, you just say, 'I’m stuck and I will never find a job.'"

Though most Eurozone economies are purusing austerity policies to boost growth, the evidence so far is dismal. Unemployment rates, especially among the youth, have risen sharply across most of Europe.

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