Friday, January 18, 2013

Do you believe that the fiscal consolidation programs in the European South are working?

The question is how we can become more competitive. The answer is known. We developed superficially on the basis of a real estate bubble, “rents,” “secure jobs,” overblown borrowing, big and non-transparent public contracts and clientalism. The end to this picture is also known. By the end of our “fiscal adjustment” program, if we assume we have covered 2/3 of the road and taken measure for the last 1/3, we will have destroyed the jobs we created within a decade. We will also have restructured “regular jobs” in favor of precarious work. Spending for education, both private and public, will be reduced. Thousands of you people, more so those that are educated, will migrate. If we are not talking about a lost generation, we must address the question of whether social cohesion, that is the money spent to create equal opportunity, constitutes a fiscal burden or an investment. Is inequality “competitive” and, thereby, necessary? #thesouthintalk

1 σχόλια:

  1. Of course fiscal consolidation programs are not working. Numerous studies have shown that austerity measures, like those who are in effect in the countries hit by the economic crisis, do not contribute to economic improvement. Rather, they are obstructive to development. The only way, in my opinion, out of the crisis is to eliminate the corruption present at every level of a given country.


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