Banks and elites will wring their hands. How can those Italians just stick a thumb in our eyes, they’ll say. Well, because real people don’t like austerity — especially when it’s imposed by the very people who made a mess of the economy.
Voters in Italy said no:
Italian voters delivered a rousing anti-austerity message and a strong rebuke to the existing political order in national elections on Monday that threatened to plunge the country into political paralysis after early results failed to produce a clear winner. Political experts said the situation would most likely lead to a shaky coalition government and once again expose Italy and the euro zone to turmoil if financial markets question the new government’s commitment to measures that have kept the budget deficit within a tolerable 3 percent of gross domestic product.
One of the problems we face is that the traditional media just repeats rhetoric without questioning assumption. When the article says “tolerable 3 percent of gross domestic product,” it’s a message, particularly if there is no explanation that the “tolerable” is only the case for the elites and bankers. The fact is the world needs budget deficits now to spur employment.
And that is a fact that seems to escape political leaders in the U.S. as well.