Editorial note: If you have not yet read our mission statement above, please do so in order that you can put our blogs in context.
5 November 2012
Manufacturing in the 17-state Eurozone fell for the eighth month in a row last month and at a faster rate than in September, according to a survey published on 2 November 2012 by Markit Economics, an independent provider of financial information.
Production fell across the consumer, intermediate and investment goods sectors.
According to the survey, “domestic market conditions remained subdued”, while trade flows into and out of the Eurozone deteriorated further.
Rates of contraction accelerated in Germany, Italy, Spain, Austria and Greece. While the downturn eased slightly in France, the country still performed below the Eurozone average. The only Eurozone state to buck the trend was Ireland, which saw increases in both output and new orders.
Commenting on the survey on 3 November, the London Guardian said that the downturn in factory activity that began in smaller periphery countries of the Eurozone had now reached the core member states of Germany and France.
Ben May of Capital Economics is quoted in the paper as saying: “Rather than the strength in the core dragging the periphery out of recession, it appears more likely that the core will follow the periphery into recession.”
So much for the austerity-focused anti-Keynsian economic ideology foisted on the Eurozone by penny-pinching Germany, which currently calls the shots. By strangling growth instead of promoting it, this ideology, translated into an economic policy based on public sector cutbacks and debt repayment, is worsening the recession instead of counteracting it.
We venture to make a prediction. Once the downturn begins to hit hard in Germany, we shall see a U-turn in Eurozone policy, which will be redirected towards fostering growth as the zone’s main economic priority, the previous focus on austerity being conveniently forgotten.
You might perhaps care to view some of our earlier posts. For instance:
1. Why? or How? That is the question (3 Jan 2012)
2. Partitocracy v. Democracy (20 July 2012)
3. The shoddiest possible goods at the highest possible prices (2 Feb 2012)
4. Capitalism in practice (4 July 2012)
5.Ladder (21 June 2012)
6. A tale of two cities (1) (6 June 2012)
7. A tale of two cities (2) (7 June 2012)
8. Where’s the beef? Ontology and tinned meat (31 Jan 2012)
Every so often we shall change this sample of previously published posts.