Stieglitz makes a big point. Portugal´s crisis is about the destruction of our productive sectors. When we joined the EU we knew we could not compete with northern Europe in some sectors (ex cereal and potatoe production, high tech industries, shipbuilding) we were promised that we would do well in others (fruit, vegetables, textiles). So we took the gamble...the result: the opening of european markets to everybody else destroying the competivness of those surviving sectores.
And I bet no german politician ever spoke about what a EU free trade agreement with China would do to the portuguese textile industry (two thirds decimated) but I bet they did about how good it would be for Germany.
Here in europe we are seeing what happens when politicians want to force people towards a political ideal (the EU) which is not only against basics economics' principals, but hasn't been endorsed by the very european people in a popular referendum. To start with, pegging a weak currency to a strong one is an economical nonsense. Anyone who has read a little bit about economics understand this basic principle. Major economist already, many many years ago, warned us against the implementation of a common currency, the euro. Furthermore, there had already been strong signals that this could not possibly work. For instance, does anybody remember the black wednesday, 16th of september 1992? The Bank of England suffered the loss of billions of pounds in the attempt to peg the sterlin to the deutsch mark but ultimately the government had to quit the ERM, a kind of precursor of the common european currency, that had been experimenting at that time. Again, all this is the result of the failure of myopic, completely unrealistic political policies based on unsound economics grounds. Our largely incompetent and probably corrupted eurocrat politicians are to blame. For this reason, I hope that in the approaching european elections, european citizens will vote against the old parties, those that pushed us, quite undemocratically indeed, in the current situation. As an Italian citizen I know who to vote for, the M5S!
I bet Stiglitz refers to Abhisit Vejjajiva @ 20:49. One of the first things the prior government did was to hire Stiglitz one of as it's economic advisors. Abhisit lost the next Thai election to Thaksin Shinawatra's sister.
Germany is ruled by the conservative party in coalition with the (neo)liberal party so naturally they push for conservative economic policies. At the same time you could argue that they are simply fulfilling their function in an representive democracy. There is no majority for helping Greece in the German population.Ordinary people only take a superficial look at economic questions and get the impression that all that Germany does is paying for the southern european countries' faults.
Well said....and sadly that is what will kill the EU and result in the isolation of Germany. Once Greece defaults...and they will...who will follow? Once they are out of the Euro the feeling of betrayal (laready simmering) will become dominant and then the south will want to part company and resort to protectionism and import replacement policies. Economicly dangerous for all but even more politicly. Does any one really want Russian military bases in Greece?
Also the opinion about the southern european countries is dominated by the stereotype that people there were lazy for wich the lack of production of export goods is seen as a proof. At the same time the economic success as an exporting country plays an important role as far as the self-perception and pride of the German people. All that is also advocated by the media. I myself am German and progressive, but unfortunately I can't give you any hope that the view on this topic will change here soon
Stieglitz makes a big point. Portugal´s crisis is about the destruction of our productive sectors.
When we joined the EU we knew we could not compete with northern Europe in some sectors (ex cereal and potatoe production, high tech industries, shipbuilding) we were promised that we would do well in others (fruit, vegetables, textiles). So we took the gamble...the result: the opening of european markets to everybody else destroying the competivness of those surviving sectores.
And I bet no german politician ever spoke about what a EU free trade agreement with China would do to the portuguese textile industry (two thirds decimated) but I bet they did about how good it would be for Germany.
Here in europe we are seeing what happens when politicians want to force people towards a political ideal (the EU) which is not only against basics economics' principals, but hasn't been endorsed by the very european people in a popular referendum. To start with, pegging a weak currency to a strong one is an economical nonsense. Anyone who has read a little bit about economics understand this basic principle. Major economist already, many many years ago, warned us against the implementation of a common currency, the euro. Furthermore, there had already been strong signals that this could not possibly work. For instance, does anybody remember the black wednesday, 16th of september 1992? The Bank of England suffered the loss of billions of pounds in the attempt to peg the sterlin to the deutsch mark but ultimately the government had to quit the ERM, a kind of precursor of the common european currency, that had been experimenting at that time. Again, all this is the result of the failure of myopic, completely unrealistic political policies based on unsound economics grounds. Our largely incompetent and probably corrupted eurocrat politicians are to blame. For this reason, I hope that in the approaching european elections, european citizens will vote against the old parties, those that pushed us, quite undemocratically indeed, in the current situation. As an Italian citizen I know who to vote for, the M5S!
I bet Stiglitz refers to Abhisit Vejjajiva @ 20:49. One of the first things the prior government did was to hire Stiglitz one of as it's economic advisors. Abhisit lost the next Thai election to Thaksin Shinawatra's sister.
Germany is ruled by the conservative party in coalition with the (neo)liberal party so naturally they push for conservative economic policies. At the same time you could argue that they are simply fulfilling their function in an representive democracy. There is no majority for helping Greece in the German population.Ordinary people only take a superficial look at economic questions and get the impression that all that Germany does is paying for the southern european countries' faults.
Well said....and sadly that is what will kill the EU and result in the isolation of Germany.
Once Greece defaults...and they will...who will follow? Once they are out of the Euro the feeling of betrayal (laready simmering) will become dominant and then the south will want to part company and resort to protectionism and import replacement policies.
Economicly dangerous for all but even more politicly. Does any one really want Russian military bases in Greece?
he often says 'k' for a 't'.
United Stakes of America. turning poinks XD
Also the opinion about the southern european countries is dominated by the stereotype that people there were lazy for wich the lack of production of export goods is seen as a proof. At the same time the economic success as an exporting country plays an important role as far as the self-perception and pride of the German people. All that is also advocated by the media. I myself am German and progressive, but unfortunately I can't give you any hope that the view on this topic will change here soon