How Long Does It Take European Policy Makers to Realize What They Are Doing is Wrong?

We Don’t Know – But It is Going to Take Longer Than It Has, Much Longer

The response of Europe to the economic crisis that started in late 2007 and continues to this day has been to concentrate on budget deficits.  Regardless of the situation, regardless of anything else that may be in place Europe has stressed reducing the budget deficits as the strongest economic policy to produce economic growth and higher employment.

Here is how that is working out.

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July 2, 2012 11:42 am

Eurozone unemployment hits record high

By James Wilson in Frankfurt

 . . . . .Joblessness in the eurozone reached 11.1 per cent in May, the highest in the history of the single currency, the EU’s statistics office said on Monday. The rate climbed in Spain, where almost one in four people is out of a job, and edged higher in France, where President François Hollande’s government is this week to set out key parts of its policies to boost growth and cut the budget deficit.

Across the eurozone the number of unemployed rose by more than 1.8m in the past year. Unemployment among those aged under 25 is more than 52 per cent in Spain and Greece.

ING’s Mr Brzeski said economic confidence was “far below historical averages in all eurozone countries” except for Germany, where unemployment remains low. But confidence is also declining in Germany, with the country’s manufacturing sector shrinking at its fastest rate in three years in June according to data from Markit’s manufacturing purchasing managers’ index.

If a word to the wise is sufficient, then European leaders must need about 3 volumes worth.