German wage repression getting to the roots of the eurozone crisis

[Sam1]

This is a very good article on the causes of the Euro crisis and the part that Germany has played."

Ben Bernanke not only supports recent German wage increases, he also thinks further wage increases for German workers are “warranted and a win-win proposition for Germany and its trade partners”?

Now that’s a jaw-dropper. Has the former head of the Federal Reserve Board—the guardian of “price stability,” which makes policy designed to keep U.S. wages in check—switched sides in the class war, now that he is retired?

Hardly. Rather, it’s that catering to the demands of German high finance and other elites has been so disastrous that even the former chair of the Fed cannot deny the undeniable: unless Germany changes course and boosts workers’ wages, the euro crisis will only worsen.

Let’s look more closely at just how German wage repression and currency manipulation pushed the eurozone into crisis, ignited a conflict between northern and southern eurozone countries (with Germany as the enforcer of austerity), and left Greece teetering on the edge of collapse.

From “Sick Man” to Export Bully

http://www.nakedcapitalism.com/2015/08/german-wage-repression-getting-to-the-roots-of-the-eurozone-crisis.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+NakedCapitalism+%28naked+capitalism%29

[elleng]

1. Important, I fear.

[nadinbrzezinski]

2. yes indeed

Yes important