No Easy Answers in Europe
I'm not too troubled by election results in France and Greece -- at least not yet. Why? Because I am not a big believer that austerity is the only answer to reducing government deficits. A departure from rigid prescriptions might be needed.
Austerity is not the solution by itself, as it tends to decrease economic growth and increase unemployment, which reduces government revenues and makes deficits harder to resolve. Spending needs to be cut and taxes increased, of course, but a pro-growth policy is more important to increasing government revenues. And pro-growth policies are often just that, policies, not spending programs....634 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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