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Europe Unveils New Austerity Packages That Still Won’t Solve The Continent’s Problems

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"Europe Unveils New Austerity Packages That Still Won’t Solve The Continent’s Problems"

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Several European economies rolled out new austerity packages this week, with Spain and Greece doing so amidst protests from citizens already bearing the burden of severe budget cuts. These new plans continue the continent’s insistence that austerity is the way to fix the Eurozone’s ongoing economic woes.

However, as this chart from Nobel Prize-winning economist Paul Krugman shows, the U.S. — which has not engaged in European style austerity — is doing much better than the Eurozone, where austerity has been implemented nearly across the board:

As Krugman wrote today, “More austerity serves no useful purpose; the truly irrational players here are the allegedly serious politicians and officials demanding ever more pain.” New data indicate that the Eurozone is headed into another recession.

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