How much of that is down to the EU though? Yes we artificially depressed food prices which hurt the farmers, but that should have been a zero sum to the overall population.No, no more than that. It's not just the basic economics regionally which may or may not be blamed on something like the euro, it's the state of Italy's overall finances. Every country has its depressed areas of course.
How much of that is down to the EU though? Yes we artificially depressed food prices which hurt the farmers, but that should have been a zero sum to the overall population.
Yes but then we're back to the fiscal policies. Like the euro or hate it, the EU has accelerated economically since it was introduced, the ECB has proved it works, we need a shared fiscal policy.I'd not so much the EU as the euro. The EU isn't a malign force, but the euro absolutely is - it drains money out of the periphery to the core. That could be resolved with fiscal transfers, which are necessary in every state. Likewise that single Treasury as we discussed earlier. But there's political opposition to it in every nation because of the loss of sovereignty. Well yes, that's what happened when it was signed up to. So Italy can't devalue, and it ends in the worst of all worlds. The difference to Greece is that Italy is too big to ignore. Much, much too big.
Yes but then we're back to the fiscal policies. Like the euro or hate it, the EU has accelerated economically since it was introduced, the ECB has proved it works, we need a shared fiscal policy.
The dollar works, in a union of 51 states, why is the euro flawed?No, not really. The fiscal policies of a nation are neither here nor there compared to the issues the Euro creates with a single exchange rate. It removes the safety valves that establish parity through exchange rate movements. Thats why you states trying to internally devalue which is virtually impossible on the one hand, and causes massive unemployment on the other. It's inevitable with a hideously flawed creation. It's not Italy's fault, or Spain's. It's an inevitable outcome.
The dollar works, in a union of 51 states, why is the euro flawed?
I think we'll do exactly that, Brexit and the following being the motivation tbh.Absolutely the dollar works. Because you have a central federal Treasury and fiscal transfers between states. If the euro had the same, no reason at all it can't work. But it's politically impossible currently, which is why it's doomed. It cannot possibly succeed, it's just one crisis to the next until they either do exactly that, or it collapses. It's one or the other.
I think we'll do exactly that, Brexit and the following being the motivation tbh.
Yet the US Treasury doesn't control economic policy, just a minor framework of it.Mmm, if you think the Brexit arguments have been thorny, you wait until governments are discussing giving up their whole economic sovereignty to a central European structure. That's why it hasn't happened, none of them will agree to it, not the Germans, not the French, no one. And good luck telling your electorate why your government no longer controls economic policy
Yet the US Treasury doesn't control economic policy, just a minor framework of it.