The focus of the austerity hawks is on banks’ balance sheets-- not creating wealth through real productive achievements. There is little attention being paid to developing a broader, people sensitive programs that are tuned for the growth (not shrinkage) of the specific economies. As one result of its continued emphasis on austerity the European Union (EU) is faced with a recession that crosses 27 member countries. There is severe social unrest in many of them.
We will have a chance to compare results of a growth based economic solution as opposed to austerity oriented plans. The French Socialist Party has just won a strong victory in France, replacing the austerity oriented UMP Party as President and Head of Parliament. They now have their sought for mandate to push for growth strategies, not austerity measures, to battle the Eurozone’s debt crisis. Although results will be influenced by many factors this could be an important data source in a complex problem that no one fully understands. We need to play close attention to how it performs.