There are two parts to The Real News posting Eurocrisis: “Democracy is Not a Given”.
One part is Eurocrisis: “Democracy is Not a Given” – German policy of low wages and beggar thy neighbor is root of euro crisis. German policy of low wages? Certainly not. I have never heard about this in the progressive press, let alone the lame stream press. Well, watch the videos, you may be shocked.
The other part is Class War: Low Wages and Beggar Thy Neighbor – The words “class war” maybe unfashionable, but it is still a battle between labor and capital.
The specter of economic imperialism rising again in Germany gives one pause, to say the least.
Maybe the previous post Paul Krugman: What Germany’s Jobs Miracle Can Teach Us didn’t have the whole story.
There is a simple economic lesson here about how economics is not so simple. The German attempt to increase employment by lowering wages based on the economic theory of supply and demand, should not have worked because of the Keynesian economic theory of demand destruction, but did work because of an entirely different economic principle of beggar thy neighbor.
I’ll rephrase Dr. Heiner Flassbeck’s conclusions for the United states.
The wage suppression that the Republicans have been trying since 1980 based on the theory of supply and demand, has not worked because of Keynes’ ideas of demand destruction. Beggar thy neighbor won’t come to our rescue because we don’t have neighbors big enough and rich enough onto whom we can shift our own problems. What little shifting we could do has already been done. The end of this road is similar to the end of the road that Germany’s policy of beggar thy neighbor is fast approaching for Germany.
See the subsequent post The Euro Crisis in 7 Simple Charts: They’re telling you a real pack of lies for the charts that support the videos in this article.