Wednesday, November 14, 2012
Worker Protests Spread In Southern Europe
This article provides an overview of the social unrest in several European states in response to austerity measures imposed by governments. There were even protests in France, which recently elected a socialist government. Many believe that the European social system is under attack by governments. The governments are caught in a doom loop. Recessions cause tax revenues to fall and they have to cut spending in order to obtain credit at affordable cost. That can worsen recessions and require further cuts in spending. The domestic banks in many of these countries are also in trouble. They made bad loans during the boom, and the recession only deepens their problems. Even good loans can go bad during a recession.