The Dutch are voting today in a close election that will to go either the anti-austerity labour party lead by Diederik Samsom or the current Dutch PM Mark Rutte, the country’s leader.
In an interview on Bloomberg, Samsom had the smartest observation on austerity we’ve heard anyone say in Europe.
“If you leave the austerity policy, the economy will go stronger, and that’s what financial markets will appreciate.”
So far, European countries have been ravaged, not because they didn’t cut fast enough, but because their economies went into the toilet. When French PM Hollande came into office, everyone was freaked out that he wasn’t going to promote an austerity path, but financial markets have been calm.
There’s more to growth than just the government spending money, obviously, but Samsom is right that the focus needs to be on making the economy strong, rather than mere cuts.
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