German Finance Minister Wolfgang Schauble says Germany's austerity is correct, and the U.S. should learn from it.
“To the question of what caused the recent turmoil in the eurozone, there is one simple answer: excessive budget deficits in many European countries,” Schauble writes in the Financial Times.
Schauble says he’s surprised that one of the most passionately debated economic issues of the day should be whether Germany is choking the rebound by reining in its debt.
“My response is an emphatic no,” he says.
Behind calls from the US for Germans to increase their debt load to assist Europe’s economic recovery, Schauble notes, lies a very different approach to economic recovery than the one Germany will continue to pursue.
"While US policymakers like to focus on short-term corrective measures, we take the longer view and are, therefore, more preoccupied with the implications of excessive deficits and the dangers of high inflation."
"The German government knows it has a responsibility to promote growth in Europe and the world," Schauble says. "We will rise to it not by piling up public debt but by fulfilling our traditional role as an anchor of stability."
The continued weakness of the U.S. economy was hammered home this month with the monthly employment report for May, The Epoch Times reports. The creation of only 20,000 non-Census jobs in May, down from 217,000 the previous month, sent shock waves through the financial markets.
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