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0 sats \ 3 replies \ @Undisciplined 21 Nov 2023 \ on: Unprecedented Wealth Erosion in Major Eurozone Economies Amidst Inflation Surge meta
A 4% dip in disposable income is what happens during a pretty big recession in America. Is that the same for Europe? It seems like the recession started a couple of years ago over there.
Yes, You need to put in 1. the real inflation data (another 3-5% loss of pp) and 2nd the cooked GDP data that always includes credit-financed gov spending which grew last year by about 2-6% depending on the country. Here in Spain for example labor market is dead, salaries are horrible (average around 2.500 euro brutto). This economy is a zombie
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I know another economist who was starting to sound the alarm about a crisis coming to Europe because their green/renewable energy programs grossly underperformed and they were going to have to supplement with way more oil and gas than anticipated. His main concern was actually how that was going to impact chemical fertilizer supply, since he works on agriculture.
This was just before Russia invaded Ukraine and all those problems were blamed on the war.
Is that about the timing of the economic decline?
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Hey, then You already know the only two economists screaming at the wall about this crisis for years. Honestly: the eurozone never overcame the GFC as it was a structural public debt and currency crisis here in Europe. The timing? It was predictable that politicians and their media outlets would use any cover story to hide the the failure of the Eurozone.
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