One definition of insanity is doing the same thing over and over again and expecting a different result. Britain elected a conservative government that immediately adopted an austerity policy. They are now entering their 3rd recession since the economic crisis, a triple dip.
Spain attempted austerity and as reported in the Bloomeberg’s piece “Adios Austerity, But Debt Will Still Limit Spain’s Growth Measures”. It has been such a dismal failure that they are now realizing the wisdom of economists like Nobel Prize winning Paul Krugman.
Spain’s 32-month experiment with austerity-at-all-costs, as devised by Angela Merkel’s budget ultras, is drawing to a close.
Prime Minister Mariano Rajoy oversaw 62 billion euros of tax hikes and spending cuts, 851,000 job losses and three different deficit targets, all in his first year in office. Now European Union budget enforcer Olli Rehn is ready to ease up on the beleaguered premier.
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