The demagoguery in Europe

Europe today is a symbol of duplicitous demagoguery. All look to Merkel and criticize it because of the savings just like she is the reason of them. Well it they don't like savings they can stop saving. But what if they simply have no money?

But look what demagoguery only - go out and say: "Austerity does not work." So we need to change something. I.e. we need to stop saving. OK. Stop them. But why while you are speaking of this, you are looking at Merkel? Perhaps because when you say: "austerity does not work" you understand "Merkel, give money" :) It is very easy to point a problem and based on this to ask for something. Anyone can point to problems. But the world is so constructed that we should select what to spend the limited resources for, and what to refuse from. I.e. it is obvious that austerity does not work if we want to keep the old standard of living. But usually, having no money, you just cut part of spending, and make savings.

The most absurd, however, is another - Merkel is deified. Like if she wanted she can end the savings. Making Germany an equivalent of austerity is an absolute manipulation. The savings come from the lack of money, and not from the wishes of Germany. And the biggest misconception is that Germany can pay for all and for everything.

Germany does not have the money. It has its own budget deficit and a huge debt (80% of GDP). Germany has simply no money to pay for the salvation of all that want to avoid austerity. I.e. this expectation that if you convince Germany to stop saving, things will get better, is an illusion.

The non-existing money can not be given. It is true that austerity is bitter. But surely it works better than the final form of savings - a default and an imposition of more drastic restrictions that can lead to entire catastrophe. Those who criticize austerity are going in a way that can lead to much more pain than the austerity requires.

June 15th 2012

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