Austerity: It’s About Time

A discussion rages with regard to the austerity measures implemented by European countries. Paul Krugman, a notable opponent of austerity measures, even refers to it as “Europe’s Austerity Madness“. If one believes Krugman’s and some other populistic outbursts, one might actually believe that governments did not take on addional debt in past years. But the graph below tells you an entirely different story, I hope!

Government consolidated gross debt as a % of GDP. Data is retrieved from Eurostat.

Government consolidated gross debt as a % of GDP. Data is retrieved from Eurostat.

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