The European Tribune is a forum for thoughtful dialogue of European and international issues. You are invited to post comments and your own articles.
Please REGISTER to post.
Has this actually happened?
Chance would be a fine thing.
This is the usual brain rot excuse - what if wages outstrip productivity?
Well - what if they do? Profits and dividends can always be cut to keep prices level. It's not as if leaving profits and dividends to accumulate is actually going to drive investment.
But apparently this realisation is unpossible. Spending on wages must always be cut first, and must be cut more and more severely, until - er - only millionaires have anything left to spend.
At this point austerity can be applied, the state can be bought, and the cycle can repeat elsewhere.
It's specious nonsense. We know that wages and productivity have been disconnected since the 70s - which is, incidentally, when this idea first became something that "everyone knows" i.e. that paying people too much was the primary cause of the inflationary shocks that were actually caused by energy price increases and by Nixon's default on US obligations.
And for the proponents - in what sense is what's happening to Greece now significantly better economically than what happened to Weimar Germany?
by afew - Mar 7 28 comments
by DoDo - Mar 1 13 comments
by maracatu - Feb 25 13 comments
by epochepoque - Mar 7 1 comment
by marco - Mar 3 43 comments
by Cyrille - Mar 8 1 comment
by Oui - Mar 5 59 comments
by Metatone - Feb 28 7 comments
by Cyrille - Mar 81 comment
by epochepoque - Mar 71 comment
by afew - Mar 728 comments
by Oui - Mar 559 comments
by Oui - Mar 413 comments
by marco - Mar 343 comments
by vbo - Mar 123 comments
by Oui - Mar 11 comment
by Oui - Mar 13 comments
by DoDo - Mar 113 comments
by Metatone - Feb 287 comments
by vbo - Feb 27110 comments
by gmoke - Feb 263 comments
by vbo - Feb 25102 comments
by maracatu - Feb 2513 comments
by Oui - Feb 2430 comments
by Oui - Feb 2214 comments
by Oui - Feb 211 comment
by Katrin - Feb 2013 comments
by Democrats Ramshield - Feb 202 comments