The
result of the Greek parliamentary elections in May is a repudiation of
the policies and politics of austerity. The Coalition of the Radical
Left (SYRIZA), which experienced Greece's greatest political gain,
campaigned on an anti-austerity platform. SYRZIA says it wants to
substantially increase investment in infrastructure, education, and other social programs. (Sound familiar?) It also wants to renegotiate
austerity measures with the European Union approved by previous Greek
governments. Any new Greek government intent on continuing the
austerity policies of the EU will face massive opposition from a
majority of the Greek population.
France's new president, François Hollande, said that the austerity-only policy of government budget cuts, championed by former French president Nicolas Sarkozy, must be combined with policies of growth fueled by government spending. Hollande said that the austerity-only policy as the prescription for curbing a spiraling euro debt crisis is "not inevitable." Hollande describes himself as a Keynesian on the economy and said he wants to pursue "growth" policies rather than austerity policies that helped topple political leaders in Ireland, Portugal, Greece, Spain, Italy, and Romania.
Politicians (of both parties), eager to expand their power, quickly saw and embraced the "advantages" of Keynesian economics, such as "prime the pump" spending. Keynes' economic theory states that active government intervention in the marketplace and monetary policy is the best method of ensuring economic growth and stability. Keynes argued that the government should increase spending, either by increasing the money supply or by actually buying things itself.
France's new president, François Hollande, said that the austerity-only policy of government budget cuts, championed by former French president Nicolas Sarkozy, must be combined with policies of growth fueled by government spending. Hollande said that the austerity-only policy as the prescription for curbing a spiraling euro debt crisis is "not inevitable." Hollande describes himself as a Keynesian on the economy and said he wants to pursue "growth" policies rather than austerity policies that helped topple political leaders in Ireland, Portugal, Greece, Spain, Italy, and Romania.
Politicians (of both parties), eager to expand their power, quickly saw and embraced the "advantages" of Keynesian economics, such as "prime the pump" spending. Keynes' economic theory states that active government intervention in the marketplace and monetary policy is the best method of ensuring economic growth and stability. Keynes argued that the government should increase spending, either by increasing the money supply or by actually buying things itself.
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