European Leaders's Efforts to Restore Confidence Causes Growth to Flag

A NYT article noted new evidence of economic weakness in Germany and Italy then told readers:

"flagging growth is complicating European leaders’ quest to restore confidence in the euro zone."

Of course one of the main reasons that growth in Europe is weak is the austerity measures that have been imposed across Europe. The loss of demand from the government means that there is less demand in the economy and therefore less growth. Apparently those in leadership positions believe that the confidence fairy will make up for the loss demand from the public sector, but unfortunate for workers living in Europe, the confidence fairy does not exist.

Prescription for the Economy
written by jumpinjezebel, August 07, 2012 1:05

Willard's prescription is the same: austerity for the middle class, bigger tax cuts for the rich. He says the Fed shouldn't do any more stimulus. What a wise guy!

-1

Why don't you Beat the Internet Press?
written by Eric G, August 07, 2012 9:38

You should start beating up on the media online.
You can go after this
http://economywatch.nbcnews.com/_news/2012/08/07/13166749-job-openings-at-4-year-high-even-as-hiring-slows?lite

Boo hooo hhooo hooo
written by Calgacus, August 08, 2012 11:00

I Sob.

Every time
you say
something
like that.

Another confidence fairy
Dies.

-1

Blame the ECB
written by Floccina, August 08, 2012 3:44

Apparently those in leadership positions believe that the confidence fairy will make up for the loss demand from the public sector, but unfortunate for workers living in Europe, the confidence fairy does not exist.

They need more monetary stimulus. If you can use monetary stimulus why use fiscal stimulus which you must pay back.

European Leaders's Efforts to Restore Confidence Causes Growth to Flag

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