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View Diary: Austerity doesn't work: New IMF report details the damage (167 comments)

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  •  Weimar Republic... (0+ / 0-)

    (-5.50,-6.67): Left Libertarian
    Leadership doesn't mean taking a straw poll and then just throwing up your hands. -Jyrinx

    by Sparhawk on Fri Jan 04, 2013 at 12:49:20 AM PST

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    •  Not a terribly relevant example. (4+ / 0-)

      Come on, you're talking about a country that had just been through a devastating war and was paying back huge reparations as a result.

      Sorry, this one's a fail.

      "Ça c'est une chanson que j'aurais vraiment aimé ne pas avoir écrite." -- Barbara

      by FogCityJohn on Fri Jan 04, 2013 at 09:35:36 AM PST

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      •  Weimar (4+ / 0-)

        This is an even worse example than FogCityJohn realized. The Weimar Republic collapsed in 1933 because it had been following what we would now call an austerity policy since the Depression began. When the spending cuts and tax hikes became politically unbearable, Heinrich Brunich as Chancellor used his emergency powers to force still more austerity down the throat of the German people. Not surprisingly, as democracy failed to respond to the crisis, the parties of the far left and right made enormous gains resulting in the triumph of Hitler in 1933. Thus your alleged example of a sovereign nation with control of its own currency being driven into collapse by "excessive public indebtedness" is FLATLY WRONG, and actually supports the opposite. Jesus h. Christ, I know US high school textbooks all love to publish that photo of Germans carrying money in wheelbarrows, but the hyperinflation of 1923 did NOT repeat NOT cause the collapse of Weimar in 1933.

        "Something has gone very wrong with America, not just its economy, but its ability to function as a democratic nation. And it’s hard to see when or how that wrongness will get fixed." Paul Krugman and Robin Wells

        by Reston history guy on Fri Jan 04, 2013 at 08:18:35 PM PST

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      •  Isn't a typical hyperinflation an example? (0+ / 0-)

        When a government tries to monetize an unpayable debt?

    •  Debt wasn't in their own currency (1+ / 0-)
      Recommended by:

      A key difference economically.

    •  Wow. You mean the country (0+ / 0-)

      that had just been saddled with the Treaty of Versailles?

      on a side note, that Treaty sure is the gift that keeps on giving. Almost 100 years later, and it's still being used to push bad economic policies.

      if necessary for years; if necessary, alone

      by SouthernLiberalinMD on Sat Jan 05, 2013 at 01:09:03 AM PST

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