Paul Krugman wrote in The New York Times last Sunday:
“More than two years have passed since European leaders committed themselves to their current economic strategy – a strategy based on the notion that fiscal austerity and ‘internal devaluation’ (basically, wage cuts) would solve the problems of debtor nations. In all that time the strategy has produced no success stories; the best the defenders of orthodoxy can do is point to a couple of small Baltic nations that have seen partial recoveries from Depression-level slumps, but are still far poorer than they were before the crisis.”
In these two years, untold billions have been spent on bail-out of many kinds – to banks and bankers.
Could it be that the defenders of orthodoxy were governed not by their devotion to the scientific method but rather by their devotion to the interests of the banks and the bankers?
Paul Krugman did not say this.
Karl Marx was two-thirds right. He was only wrong about recommending the dictatorship of the proletariat.
None of us is perfect.