Robert Mundell Toilet and the Architecture of the Euro – it’s not failing. It’s doing what its supposed to do

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Robert Mundell’s Toilet and the Architecture of the Euro – It’s not failing. It’s doing what its supposed to do: wrecking labour laws and reducing wages

Mundell explained to me that, in fact, the euro is of a piece with Reaganomics:

“Monetary discipline forces fiscal discipline on the politicians as well.”

And when crises arise, economically disarmed nations have little to do but wipe away government regulations wholesale, privatize state industries en masse, slash taxes and send the European welfare state down the drain.

Thus, we see that (unelected) Prime Minister Mario Monti is demanding labor law “reform” in Italy to make it easier for employers like Mundell to fire those Tuscan plumbers (who make it so difficult to get his toilet moved in his Italian villa). Mario Draghi, the (unelected) head of the European Central Bank, is calling for “structural reforms” – a euphemism for worker-crushing schemes. They cite the nebulous theory that this “internal devaluation” of each nation will make them all more competitive.

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Donagh is the editor of Irish Left Review. Contact Donagh through email: dublinopinionAtgmail.com