Home > Uncategorized > Links for today: Wren-Lewis, Häring and Mitchell go for the facts, expose austerity disinformation

Links for today: Wren-Lewis, Häring and Mitchell go for the facts, expose austerity disinformation

1) Simon Wren-Lewis looks at the facts and finds that The UK prime minister lies about Greece. The truth:

The real travesty however is in the implication that somehow Greece failed to take the ‘difficult decisions’ that the UK took. ‘Difficult decisions’ is code for austerity. A good measure of austerity is the underlying primary balance. According to the OECD, the UK underlying primary balance was -7% in 2009, and it fell to -3.5% in 2014: a fiscal contraction worth 3.5% of GDP. In Greece it was -12.1% in 2009, and was turned into a surplus of 7.6% by 2014: a fiscal contraction worth 19.7% of GDP! So Greece had far more austerity, which is of course why Greek GDP has fallen by 25% over the same period“.

2) Norbert Häring looks at the facts and finds that the ARD (German television) lies about Greece (In German, a whole list of inaccuracies, outright mistakes, wrong data and dishonest reporting)

3) Bill Mitchell goes the additional theoretical and empirical miles to take down a crucial austerity document from Brussels. The truth: lowering wages did not work anymore once everybody started to do this (and not just Germany).

  1. March 23, 2015 at 4:21 pm

    Reblogged this on iGlinavos and commented:
    Some excellent reading

  2. March 24, 2015 at 1:23 am

    Lowering wages *never* works because debts are denominated in constant dollars, not in deflated dollars, and virtually everybody has debt either themselves or once removed, the most significant of which is their home. All that lowering wages manages to do is make debts unpayable and thus transfer property from debtors to creditors. We had an entire Great Depression proving this point, for cryin’ out loud.

    In an ideal neoliberal world debt apparently doesn’t exist. That’s all I can think, given their obsession with lowering wages. I wonder what color the unicorns are in that fictitious universe of no debt? Probably pink and fluffy, methinks…

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