The moral contours of QE depend on your angle of vision. But would you rather be surrounded by mass unemployment?
This article is pretty wonky, and I don’t profess or pretend to understand all of it. There a couple of basic takeaways for me.
The main one is this: AUSTERITY DOES NOT WORK.
“The crippled eurozone alone has chosen to stagger on defiantly without monetary crutches. The result has been a double-dip recession of nine quarters, the longest since the Second World War. The austerity regime has been self-defeating even on its own crude terms. Debt ratios have ratcheted up even faster.”
“We can all agree that America’s recovery has been feeble. The unemployment rate has fallen to 7pc, but that masks the damage as discouraged workers drop off the rolls. The labour participation rate is still near a 40-year low of 63pc. Yet there is no comparison with the eurozone’s jobless rate of 12.1pc, let alone the crucifixion of Southern Europe’s youth.”
(Side note: I just heard on an NPR report yesterday that youth unemployment in Italy is 25%. Wonder how much higher it needs to get before people take to the streets.)
The other takeaway is this sobering fact:
Economies don’t work like household budgets, and it’s a dangerous oversimplification in the extreme to believe that they do.
See on www.telegraph.co.uk