logo

Iron Lady? Angela Merkel Faces Criticism for Austerity Measures

image
Author: Tisha Casida
Created: 27 June, 2012
Updated: 13 October, 2022
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.

Latest articles

A wide shot of an Alaska city.
In a True Nail-Biter, Alaska Voters Reject Repeal of Top 4 Primary and Ranked Choice Voting
Two weeks after Election Day, Alaska voters finally know the fate of their election system. The choice before them was keep the nonpartisan Top 4 primary system with ranked choice voting in the general election or go back to partisan control over elections....
21 November, 2024
-
5 min read
Coin with Trump's face on it.
How Will the New Government Affect Independent Voters' Finances?
My rates! What happened to my rates? Partisan and independent voters ranked the economy the most important issue in the 2024 election....
20 November, 2024
-
9 min read
An elephant and donkey facing each other on a red bar.
Understanding The ‘Other Side’ Is More Important Than Ever
For some of us, just reading the title of this piece may be irritating — even maddening. If you’re scared about Trump’s election, being asked to understand the “other side” can seem a distant concern compared to your fears of what might happen during his presidency....
20 November, 2024
-
4 min read