The Fairy Tale of Rising Competitiveness in the Euro Periphery
From Testosterone Pit
December 22, 2012 - 7:56pm
Contributed by George Dorgan. Eurocrats claim that Greece and other periphery countries are on track to gain competitiveness because wages are falling. But wages are only part of the competitiveness story. Cost of labor contains pension schemes, taxes, etc. that might increase with austerity measures. And other production factors, notably capital, are missing.
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