Iron Lady? Angela Merkel Faces Criticism for Austerity Measures

image
Published: 27 Jun, 2012
1 min read

Politics can be a strange science. This last week, Chancellor Angela Merkel of Germany was called “the most dangerous German leader since Hitler” for her “austerity measures” (making a budget and sticking to it?).

She is being demonized for cutting spending, and for sticking with her decisions to not ‘bail out’ others. They say that “Merkel won’t budge. She is a purveyor of the conventional wisdom which says that the economy is like a household that can’t borrow or spend more than it earns. But economies are not households – or credit cards! – and common sense tells us that the solution to a downturn caused by a prolonged drought in demand is not to reduce demand further (by slashing spending).”

And slashing spending is not necessarily equal to reducing demand. Demand comes from a useful product being desired and then being purchased. Cutting spending in itself has to do with budgeting– the horse must come before the cart.

And, of course, there is proof of this being a winning strategy from yet another woman leader– Margaret Thatcher– who also was demonized and criticized for what she did– eventually creating a robust economy that was good for her citizens. It was painful, but it worked. The house of government must be in order, just like each of us must have our house in order.

You Might Also Like

Why Mathematicians Love Ranked Choice Voting
Why Mathematicians Love Ranked Choice Voting
The Institute for Mathematics and Democracy (IMD) has released what may be the most comprehensive empirical study of ranked choice voting ever conducted. The 66-page report analyzes nearly 4,000 real-world ranked ballot elections, including some 2,000 political elections, and more than 60 million simulated ones to test how different voting methods perform....
11 Dec, 2025
-
4 min read
California flag
Quirk Silva’s Exit Sparks a High-Profile Orange County Clash, Where Independent Voters Control the Math
California’s 67th Assembly District stretches across parts of Orange and Los Angeles counties, connecting some of the region’s most dynamic and diverse suburban communities. It includes the entire cities of Cerritos, La Palma, Hawaiian Gardens, Artesia, Buena Park, and Cypress, as well as portions of Fullerton and Anaheim....
18 Dec, 2025
-
6 min read
Donald Trump
Trump Signs Order to Reclassify Cannabis to Schedule III
WASHINGTON — President Donald Trump announced Thursday that his administration will officially move cannabis from Schedule I to Schedule III under the Controlled Substances Act, a decision that marks the most significant change to U.S. drug policy since the early 1970s....
18 Dec, 2025
-
2 min read