Show paragraph

Hi Robert,



I enjoyed reading this, "All policymakers are Keynesian to come degree," (or they're no longer employed in that role, one assumes) no matter their original intent.



It's too bad that the Europeans were bit by the austerity bug so badly. A little austerity could've been a good thing. A lot of austerity has become a very bad thing.



Hence, the recession was lengthened, which consequently made the strong EU economies stronger, while the weaker EU economies slipped badly by comparison.



Germany came out solidly on top.



Compared to the other EU states, strong Germany is now mighty Germany. And when compared to developed nations outside of Europe, Germany either continues apace -- or vis-à-vis the United States, has only slipped a little.



It's a very good thing that mighty Germany was around to bail out a half a dozen EU states, this recession. Or there may not have been much of an EU economy to save.



Imagine if Austerian economics had been used the way it was likely intended, not literally, but figuratively.



It would have enforced a re-prioritization of spending towards those spends where the best 'bang-for-the-buck' could be had.



That is one way to get out of a recession. Take the same budget money -- and spend it in ways that create the most wealth per euro (for governments, that means tax revenue) -- as opposed to just letting the money get spent almost randomly, as regards strict 'bang for the buck' guidelines.



Prioritizing spending to get the 'most for the least' is always important. But in advance of a recession, or as it begins to occur, that is the time to re=prioritize the often rather nebulous budget spending and remake it into the most efficient use of money possible.



Priority #1, #2, #3, etc.



"Which spending earns us the least amount of revenue, and which gains us the most? The better return is where we shall concentrate more of our spending."



(Without increasing overall spending, Keynesian-style)



In a nutshell, the European's should've re-prioritized their spending to gain maximum efficiency of money by reallocating less efficient money.



Best regards, JBS