If you do austerity you get Europe. All the people glorifying capitalism don't see that Europe is a bonafide example of diligently following neoclassical econo

If you do austerity you get Europe. All the people glorifying capitalism don't see that Europe is a bonafide example of diligently following neoclassical economics maxims. The end result? The interest rate drops below zero in the debt brake country (Germany). Banks are scared of passing the costs onto depositors because they fear their customers withdrawing their money as cash. Now what? Are you going to eliminate cash? Are you going to introduce an exchange rate vs cash? What mechanism do you propose for creditors to spend off their savings so that it is mathematically possible for the rest of the economic sectors including the public sector to pay off their debts and shrink the money supply? What are you going to do about the constantly declining money velocity that, apparently, requires a constant expansion of the money supply? The problem is that most of these things are defined by mathematical identities and cost benefit structures. Unless you assume some omnipotent market participants with infinite capacity to track everything akin in power to a hypothetical central planner, these problems will stick around and your feelings or sense of justice about what is right or wrong won't matter. The empirical evidence is that interest rates have been declining for 800 years and that we have basically reached the end of positive real returns. Go ahead and do more austerity and lower the interest rate even further.