Can the eurozone be saved? I’ll be writing about this Sunday in the Seattle Times. Nobel laureate economist Joseph Stiglitz is among the growing number of his colleagues who are pessimistic. In Project Syndicate, he writes:
Even if those from Europe’s northern countries are right in claiming that the euro would work if effective discipline could be imposed on others (I think they are wrong), they are deluding themselves with a morality play. It is fine to blame their southern compatriots for fiscal profligacy, or, in the case of Spain and Ireland, for letting free markets have free reign, without seeing where that would lead. But that doesn’t address today’s problem: huge debts, whether a result of private or public miscalculations, must be managed within the euro framework.
Public-sector cutbacks today do not solve the problem of yesterday’s profligacy; they simply push economies into deeper recessions. Europe’s leaders know this. They know that growth is needed. But, rather than deal with today’s problems and find a formula for growth, they prefer to deliver homilies about what some previous government should have done. This may be satisfying for the sermonizer, but it won’t solve Europe’s problems – and it won’t save the euro.
So, today’s poll:
Read on for the best econ links of the week and the haiku.
The Week’s Links:
- The unemployment rate drops, but economists aren’t smiling || BusinessWeek
- America’s poverty belt || Atlantic Cities
- Hitler hears about the collapse of the eurozone || Zero Hedge
- Asia economy headed for yo-yo year in 2012 || Reuters
- Jamie Dimon (a “wage earner”): Stop bashing the rich || CNBC
- In foreclosure capital, meltdown and poverty feel permanent || Huffington Post
- The insane wealth of Wal-Mart’s founding family || Salon
- China’s 10 years in the WTO shake the world || NY Times
Today’s Econ Haiku:
Instead of building business
A merger dropped call