Paul Krugman’s Love Affair with France..

An article disputing Krugman’s assertion that austerity loving UK grew slowly that stimulus loving France.

In recent years, Paul Krugman has incessantly defended France and its welfare state, even going so far as to pretend that the French economy was in fact in better shape than the British economy.According to him, “To an important extent, what ails France in 2014 is hypochondria, belief that it has illnesses it doesn’t.” However, except for some Keynesian propagandists, nobody believes that the French economy is not deeply in crisis and it is now more and more obvious that Krugman is wrong.

The UK, on the other hand, is growing faster than any other major advanced economy this year. Growth has picked up since the first quarter of 2013 to 2.6 percent in 2014 — a seven fold higher rate than for France — and employment in Britain, both in absolute terms and as a share of the adult population, has never been higher. Even wages, which were constantly depressed after the 2008 crisis, has begun to rise again.

As usual, British politicians took advantage of the British economy’s good performances to make fun of France. Chancellor Mr. Osborne has claimed: “And which county has created more jobs than the whole of France? The great county of Yorkshire,” after the latest UK jobs figures showed employment at a record high. David Cameron recently stated that “Labour will make us as bad as France.” French bashing is almost part of the British culture, it is true, but for now, the UK is indeed in better shape than France.

These comparisons will continue with no clarity. They are based on time period, indicators for comparison and so on. They differ most of the time…

The reality is one just does not know what works and what doesn’t..


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