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Crisis in south Europe is due to public overspending (Where do you live? Do you understand how the money is spent down there?) Anyway, of course if you produce
by viandante 15y ago
Crisis in south Europe is due to public overspending (Where do you live? Do you understand how the money is spent down there?)
Anyway, of course if you produce more money, you still have a spending problem. Only way to solve this in the long term is either increasing taxes or lowering the expenses. You choose.
- cgrand-net 15y agoProducing more money doesn't fix bad spending policies but it reduces debt -- both private and public -- at the expense of the lenders. It's also a way to alter the capital/work incomes ratio. There is, rightly, a German trauma towards devaluation -- and that's why they agreed to be part of the Eurozone as long as the Euro was managed like the Mark.
- viandante 15y agoThat kind of debt decrease is just another tax. A sublte one, but a tax. And if you do that, then nobody will want to borrow you money at normal interest rates. Again, Italy 80s, we did it and it did not work.