They Have Made A Desert, And Called It Adjustment: It continues to be a source of amazement to see what passes for a success story among austerity advocates. Ireland is proclaimed a huge success despite 14 percent unemployment and a very slow recovery in incomes. And then there’s Latvia…. GDP down 24 percent, recovered to being down only 18, is a triumph?
Interestingly, people who trumpet small bounces off a very low floor as successes for austerity tend to describe the New Deal as a failure because the fairly rapid growth after 1933 wasn’t enough to fully restore prosperity until the war. Funny how that works.