Posted on Tuesday 13 December 2011
Paul Krugman calls like he sees it. And like Jeremiah in the Old Testament, he catalogs the ills of letting this economic malaise fester.
Let’s talk, in particular, about what’s happening in Europe — not because all is well with America, but because the gravity of European political developments isn’t widely understood. First of all, the crisis of the euro is killing the European dream. The shared currency, which was supposed to bind nations together, has instead created an atmosphere of bitter acrimony. Specifically, demands for ever-harsher austerity, with no offsetting effort to foster growth, have done double damage. They have failed as economic policy, worsening unemployment without restoring confidence; a Europe-wide recession now looks likely even if the immediate threat of financial crisis is contained.
Krugman goes on in depth about Hungary, and you should read it.