Befuddled Keynesians attack German responsibility

Re: Germany’s Insistence on Austerity Meets With Revolt in the Eurozone

These two article in the New York Times from Wednesday of this week illustrate the confusion and increasing stridency of Keynesian school economists. All the Eurozone countries except Germany are heavily in debt with no real prospect for reducing their annual budget deficits. Only Germany has a balanced budget. This is what Keynesians falsely label as “austerity”. It is no such thing. It is merely being responsible. The I.M.F. and other nations of the Eurozone want Germany to spend more as the cure to other nations’ debt problems. Their sole rational is the typical Keynesian dogma that it is spending that drives an economy forward. The I.M.F.’s chief economist, Olivier Blanchard, states that large scale infrastructure projects funded by debt, if properly undertaken, are beneficial and will bring quick growth benefits. How German infrastructure projects will cure Greece’s bloated welfare state bureaucracy is beyond me. It is well past time for the other nations of the Eurozone to stop criticizing Germany and start emulating her. Patrick Barron
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