Unemployment in Euro Zone Reaches a Record High

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    Apr 02, 2013 5:09 PM GMT
    http://www.nytimes.com/2013/04/03/business/global/unemployment-in-euro-zone-reaches-a-record-high-of-12-percent.html

    The jobless rate reached 12 percent in both January and February, the highest since the creation of the euro in 1999, Eurostat, the statistical agency of the European Union, reported from Luxembourg.

    The January jobless rate for the 17-nation currency union was revised upward from the previously reported 11.9 percent.

    For the overall European Union, the February jobless rate rose to 10.9 percent from 10.8 percent in January, Eurostat said, with more than 26 million people without work across the 27-nation bloc.

    European officials continue to hold out hope that the economy, which continued to shrink in the first quarter of 2013, will begin turning around in the second half of the year. Many private sector forecasters are more pessimistic, expecting a contraction of as much as 2 percent in the euro zone’s gross domestic product this year, after a 0.9 percent contraction last year.
  • conservativej...

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    Apr 02, 2013 7:43 PM GMT
    I do not believe we are yet to the bottom. There remains significant refactoring yet to occur in many Eurozone nations. Some nations will never recover.
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    Apr 05, 2013 8:52 PM GMT
    Yet another rock in the overwhelming mountain of evidence that shows that austerity doesn't work.
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    Apr 05, 2013 8:59 PM GMT
    CFL_Oakland saidYet another rock in the overwhelming mountain of evidence that shows that austerity doesn't work.


    Are you suggesting that countries like Cyprus, Greece, Italy have much of an alternative? And no, this is another rock in the overwhelming evidence that spending money that you don't have on programs that don't create any returns increase risk and have unintended consequences.
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    Apr 06, 2013 1:45 AM GMT
    Well, they didn't have an alternative, because they don't control their currency. Germany (among others) rammed austerity down their throats, despite economic theory that suggests that an economic contraction is the worst possible time to institute austerity measures. Germans are irrational about that sort of thing, because of the still painful memories of the ghastly devaluation of the Mark 80 years ago.

    But we do have choices, as we control our own currency.
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    Apr 06, 2013 1:50 AM GMT
    CFL_Oakland saidWell, they didn't have an alternative, because they don't control their currency. Germany (among others) rammed austerity down their throats, despite economic theory that suggests that an economic contraction is the worst possible time to institute austerity measures. Germans are irrational about that sort of thing, because of the still painful memories of the ghastly devaluation of the Mark 80 years ago.

    But we do have choices, as we control our own currency.


    Who would have lent them the money to spend even if they did control their own currency? Or are you suggesting that they just print it and go with hyperinflation effectively defaulting on their debts?