Austerity has Failed – Reblogged from The Nation

Reblogged from The Nation

Global campaign group Avaaz organized this open letter to Angela Merkel on the back of a petition, signed by over half a million Europeans, demanding an end to the failed austerity program in Greece.

Austerity Has Failed: An Open Letter From Thomas Piketty to Angela Merkel

Five leading economists warn the German chancellor, “History will remember you for your actions this week.”

By Thomas PikettyJeffrey SachsHeiner Flassbeck, Dani Rodrik and Simon Wren-Lewis

The never-ending austerity that Europe is force-feeding the Greek people is simply not working. Now Greece has loudly said no more.

As most of the world knew it would, the financial demands made by Europe have crushed the Greek economy, led to mass unemployment, a collapse of the banking system, made the external debt crisis far worse, with the debt problem escalating to an unpayable 175 percent of GDP. The economy now lies broken with tax receipts nose-diving, output and employment depressed, and businesses starved of capital.

The humanitarian impact has been colossal—40 percent of children now live in poverty, infant mortality is sky-rocketing and youth unemployment is close to 50 percent. Corruption, tax evasion and bad accounting by previous Greek governments helped create the debt problem. The Greeks have complied with much of German Chancellor Angela Merkel’s call for austerity—cut salaries, cut government spending, slashed pensions, privatized and deregulated, and raised taxes. But in recent years the series of so-called adjustment programs inflicted on the likes of Greece has served only to make a Great Depression the likes of which have been unseen in Europe since 1929-1933. The medicine prescribed by the German Finance Ministry and Brussels has bled the patient, not cured the disease.

Together we urge Chancellor Merkel and the Troika to consider a course correction, to avoid further disaster and enable Greece to remain in the eurozone. Right now, the Greek government is being asked to put a gun to its head and pull the trigger. Sadly, the bullet will not only kill off Greece’s future in Europe. The collateral damage will kill the Eurozone as a beacon of hope, democracy and prosperity, and could lead to far-reaching economic consequences across the world.

“Right now, the Greek government is being asked to put a gun to its head and pull the trigger.”—Piketty, et al.

In the 1950s, Europe was founded on the forgiveness of past debts, notably Germany’s, which generated a massive contribution to post-war economic growth and peace. Today we need to restructure and reduce Greek debt, give the economy breathing room to recover, and allow Greece to pay off a reduced burden of debt over a long period of time. Now is the time for a humane rethink of the punitive and failed program of austerity of recent years and to agree to a major reduction of Greece’s debts in conjunction with much needed reforms in Greece.

To Chancellor Merkel our message is clear; we urge you to take this vital action of leadership for Greece and Germany, and also for the world. History will remember you for your actions this week. We expect and count on you to provide the bold and generous steps towards Greece that will serve Europe for generations to come.

Sincerely,

Heiner Flassbeck, former State Secretary in the German Federal Ministry of Finance

Thomas Piketty, Professor of Economics at the Paris School of Economics

Jeffrey D. Sachs, Professor of Sustainable Development, Professor of Health Policy and Management, and Director of the Earth Institute at Columbia University

Dani Rodrik, Ford Foundation Professor of International Political Economy, Harvard Kennedy School

Simon Wren-Lewis, Professor of Economic Policy, Blavatnik School of Government, University of Oxford

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My work background is in operational meteorology and in my career I have been involved in forecasting for everything from bananas to jumbo jets.I joined the Met Office 1974 as an observer at Glasgow Airport. After training as a forecaster, I worked as an Operational aviation forecaster at various defence sites and airports. In 1982, I moved to Glasgow Weather Centre as a forecaster and STV broadcaster till 1988. He then took up a post as Senior Forecaster London Weather Centre, then Senior Forecaster ITV where I qualified as a trainer in presentation techniques for the ITV Association. After being diagnosed with MS, he moved into management and became Head of London Weather Centre in 1997 followed by a period of front-line management for Southern England and Europe covering London and Cardiff Weather Centres and the Met Offices on defence stations from Akrotiri in Cyprus to St Mawgan in Cornwall. He took up the post of Met Office Chief Advisor for Scotland & Northern Ireland in March 2008 and moved to Edinburgh. I retired in September 2014. My one claim to fame is once performed a comedy sketch on TV with Manuel (Andrew Sachs) from Fawlty Towers in support of Comic Relief.

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Posted in Austerity, Comment, Democracy, Economics, EU, Greece, News, Politics

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