European economies suffer a crisis of combination

Noralv Veggeland

doi:10.14254/jems.2018.3-1.6

Abstract

In Europe, where the financial crisis was transformed into national debt crises in several countries, the current phase of the denial cycle marked by an official policy approach predicated on the assumption that normal restored through a mix of austerity, privatization and less state involvement came through (anti-Keynes). The other view is this. Governmental investments – and financial decision-making to regulate the effective demand in national economies is based on the basic principles introduced by John Maynard Keynes in his ‘General Theory of Employment, Interest and Money (1936). The solution of the temporary crisis of the democratic capitalism might be linked to Keynes by his successors the neo-Keynesians. However, the representative democracy has become weak and fragmented, and under control of international powerful multinationals. The citizens not any longer look upon their national government as their representatives but as representatives for interest of foreign states and international organizations. Poor public politics and policy of austerity generating a crisis of combination are what come out of it.

Highlights

IntroductionThe political German scientist Wolfgang Streeck writes in the Le Monde Diplomatique, January 2012 that “Every day we read in the newspapers that the markets dictate what sovereign and democratic states can do and what they cannot do for their citizens
In Europe, where the financial crisis was transformed into national debt crises in several countries, the current phase of the denial cycle marked by an official policy approach predicated on the assumption that normal restored through a mix of austerity, privatization and less state involvement came through
The political German scientist Wolfgang Streeck writes in the Le Monde Diplomatique, January 2012 that “Every day we read in the newspapers that the markets dictate what sovereign and democratic states can do and what they cannot do for their citizens

Summary

Introduction

The political German scientist Wolfgang Streeck writes in the Le Monde Diplomatique, January 2012 that “Every day we read in the newspapers that the markets dictate what sovereign and democratic states can do and what they cannot do for their citizens. The consequence is that the citizens not any longer look upon their government as their representatives but as representatives for interest of foreign states and international organizations”. It is not the market that directly dictates governments, that is what deregulation of markets does. Let’s have an analysis of the issue

Basic material throwing light on the crisis issue

Some findings

Findings

Conclusions