Wonderful advice coming from Nobel Laureate Economist Nouriel Roubini on How Europe should solve its economic Crisis, and it AIN’T Trickle Down. Republicans should take note.
Here’s a summary from CNBC (my favorite Conservative site.)
“Governments in Europe should lower taxes and increase salaries to boost growth rather than insisting on austerity and continued saving,” famous economist Nouriel Roubini told a German newspaper in an interview on Tuesday.
Nouriel Roubini, professor of economics and international business at New York University, said Germany should shift focus away from savings.
Roubini also said the German government should give its citizens incentives to go on holiday in countries in the south of Europe that were affected by the debt crisis to help those states recover.
Some leaders in major European countries have already shifted their rhetoric from austerity to growth, as tax increases and cuts in government spending have exacerbated the economic downturn, causing deep recessions in some euro zone countries. But Germany still insists on austerity as a way to bring budgets under control.
“The savings madness must be stopped. Governments must lower taxes and increase wages. Europe needs growth,” Roubini told popular newspaper Bild.
“The German government should give every German household a 1000 euro ($1,250) travel voucher. However, it should only be used for holidays in crisis countries. That will help boost growth there. In addition, everyone who buys a holiday home in a southern European state should get a tax bonus,” he added.
MY TAKE ON AMERICA
I’ve been saying the same thing regarding Trickle-Up Economics. For example, the Big Oil and Gas $4.86 Billion dollar annual tax incentives are ridiculous. Oil and Gas is doing just fine ($38 Billion quarter over quarter profits) so instead of continuing to ice their cake, give that incentive to American Households. That would translate to approximately $500 per family. Do you think those dollars might “trickle-up” to the economy?
Obama’s transportation bill being held hostage by Republicans is another good example. Put 1.6 Million people to work repairing our crumbling infrastructure. Contractors and Construction companies need the boost and Americans need the jobs. Oddly congress supports the idea, but it would politically tough for the Republicans to do anything that might actually HELP the economy before the presidential election..