The success of austerity in Spain: The soft bigotry of incredibly low expectations
from Dean Baker
Paul Krugman rightly criticizes the proponents of austerity for claiming Spain as a success story. As Krugman points out, its economy is growing, but it has a long way to go to make up the ground lost in its downturn.
He makes this point in a graph showing log GDP, but this picture is actually too generous. We should care about GDP per capita, and here the story is even worse.
So with its austerity agenda Spain is doing considerably worse than the United States in its recovery from the Great Depression. Apparently, this now counts at success among the honchos in the euro zone.