“What happened was a very vulgar and sinister transfer of losses on the books of the banks onto the shoulders of the German taxpayer. And Mrs Merkel never told the German taxpayer that.” In this enlightening video three economists explain why austerity is an ‘economically catastrophic’ policy that instead of fixing Europe, could rip it apart and spell the end of the euro.
James Galbraith and Yanis Varoufakis of the University of Texas, and Jeffrey Sommers of the, Institute of World Affairs discuss the practice of austerity, its impacts, and its possible alternatives, with a focus on Europe and the global economy in the wake of the Global Economic Crisis. Definitely worth a watch.