Monday, July 9, 2012

A Marshall Plan for Europe?

Does Europe Need a New Marshall Plan?

Whenever there is an international problem self-proclaimed experts show up and invoke the myth of the Marshall Plan. This has also recently been the case with the European crisis. Like many before him, such as Krugman, it was recently billionaire investor George Soros who showed his lack of historical knowledge by pronouncing that Europe needs a new Marshall Plan and that it was foremost American generosity that brought the old continent back on the road to prosperity. He pointed out that the West Germany economic miracle was the result of the Marshall Plan and that now it was Germany’s turn to do the same for Southern Europe. Facts, however, tell a different story than those who want us to believe that what makes economies grow is that governments spend ever more money to “stimulate” economies in depression.

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