Unemployment in the Eurozone rose to a new high in September, with nearly 18 1/2 Europeans out of work, a rate of 11.6%. The austerity measures meant to stop a debt crisis caused an economic crisis, in other words.
The jobless rate in the 17-nation currency union ticked up to 11.6 percent from the 11.5 percent in August, as 146,000 more people were classified as unemployed, Eurostat, the statistical agency of the European Union, reported from Luxembourg. The August figure, itself already a record level, was revised upward from the 11.4 percent previously reported.
Spain, where the economy has been shellacked by a property sector collapse and government austerity measures, continues to have the highest jobless rate, at 25.8 percent. Greece, where the European sovereign debt crisis began, was next, at 25.1 percent in July, the most recent month for which data were available.
Third quarter GDP results will show another quarter of contraction in the Eurozone, as the currency region continues in a recession. Business credit is down as well. Yet the prevailing opinion among elites is that the Eurozone crisis has been “solved.” After all, debt yields are relatively stable. The market isn’t gunning for any particular country. Everything’s fine, right? Well, no. The currency region is in the grips of an economic crisis, which they have no plan from which to extricate themselves. In fact the plan amounts to “more austerity.” That’s what we’re seeing in Greece, Spain and Portugal, where rallies today will protest large tax rises and cuts to public sector wages.
You would think this real-time experiment with austerity coming out of a financial crisis would cause those promoting the exact same prescription for the United States to mull it over some more. Instead we get the Bipartisan Policy Center and the Committee for a Responsible Federal Budget and the Fix the Debt campaign. But even in the electoral sphere, we’re seeing elites refuse to come to terms with numerical reality if it gets in the way of their story.




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Why should they? They’re richer and more powerful than they’ve ever been. From their standpoint, exactly what is the problem?
I suppose I could preempt the inevitable, “No, Eric. Global warming is their problem, but they don’t see it.”
First of all, yes, global warming is a problem — for the poor. When it becomes an unavoidable problem for the rich, they’ll deal with it — on their terms. Their solutions will be like all their other solutions to everything else: designed to benefit them at the expense of everyone else.
The idea that, if we could just convince them global warming is real, then they’ll remake society along lines beneficial to everyone, is fantasy.
And certainly, there is a sizable and growing segment of the ruling class that already sees global warming as an issue that will have to be addressed. And they’re certainly planning for it. The fixes they will propose will certainly be highly authoritarian and even more hurtful to the poor.
The left should ignore elites, and start focusing on radical theory, vision, and strategy — the things it can control. But it won’t do this anytime soon, unfortunately. Maybe with gay marriage and marijuana legalization, but not with anything involving economics.
Clearly we need a new crop of uber wealthy to run the world or it is curtains for all of us. Once they own all the Gold and the only good paying jobs are as riot police what is their plan?