August 08, 2013
The NYT had an article on French President Francois Hollande’s efforts to lower the unemployment rate. The article neglected to mention the role of the policy of the European Central Bank and European Union in raising unemployment in France.
The EU/ECB have forced the countries of southern Europe to have large cuts in government spending and tax increases. This has pushed the countries into a severe recession, thereby sharply reducing demand for imports from countries like France.
This would be analogous to a situation in which the NYT was discussing the economic situation of Indiana without ever mentioning that the economies of Illinois and Ohio were in severe recessions. It will be very difficult for France to recover as long as the EU/ECB are insisting on policies that keep Spain, Portugal, Greece, and Italy in recession.
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