Are European heads of state to blame for the current employment crisis in Europe? Should they all be replaced, en masse, or is there a deeper truth? To what extent do CENTRAL BANKS, which operate beyond the powers of elected executive officers, bear responsibility for unemployment? Does an electable candidate have to have a platform that seeks to reform that relationship?
Washington Post Slide Show
“While austerity measures were introduced to ease the financial crisis by lowering public debt, they are also slowing down economies as government spending drops off. This is also pushing unemployment higher and threatening the continent with recession. Some experts urge leaders to instead loosen spending to encourage growth. This is a battle between Keynesian economics and the free market, whether increased government spending would save the economy or ultimately destroy it by replacing the free market with dependency on government.
But many European countries have completely mismanaged their budgets for continued government stimulus, which lends to the argument of free market supports that Keynesian economics is unsustainable. Greece is relying on the most recent bailout to pay its bills and creditors want to see further cuts. Spain is also cutting spending, while dealing with a revived separatist movement of the Catalan province that does not want to pay the country’s bills. Both of these countries have the eurozone’s highest unemployment rates of 25 percent apiece.”