Worse than the 1930s: Europe’s recession is really a depression
Europe’s self-inflicted wounds are making its recession worse than the worst of the 1930s.
It would be interesting to compare policies enacted in a time of economic crisis to see which ones led to faster, more robust, and more stable recoveries and which ones did not. Hypothetically, it would make sense for increased spending to prop up average consumers, rather than protect the established elites’ stockpiles of wealth. One can use it more than the other, and would use it to keep the economy humming along while the other would just sit on it and slowly reintroduce it when they “felt” that the time was right (if ever). Banks are only going to help banks. People are going to help themselves work their ways out of economic depression. Therefore, why not back up the public and let the banks, bankers, and elites (who started the crisis in the first place through their policy choices) go down? What would keep the government from protecting itself through protecting the public? How would the elites not benefit from preserving the social unit in the first place rather than keep wealth that they don’t and can’t use?
Just some thoughts.