Friday 15 November 2013

A graph that says it all

This is a simple graph (via Paul Krugman) plotting industrial production in the Eurozone since the beginning of the crisis, and in the 30s, from the start of the great Depression.

Actually, Excel graphics make it look better than it really is: in the 30s we only had one point a year, and Excel will plot that in the middle of the interval -which is why the 30s curve does not start from the origin.
In other words, it is lagging by 6 months. So to really get a comparable point to now, you'd need to add 6 months of rebound from the 30s. We are actually much lower, not slightly lower, than at the same point 80 years ago, and of course the momentum is taking us further apart.

Amazing. And the Austerians are congratulating themselves. Hard to argue against that fitting the definition of sociopathy.

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