by Michael Tarsala
A single chart about beer prices can tell you what you need to know about the impact of the European economic crisis on real people.
Raise your glass to Joe Weisenthal at Business Insider who came up with this chart:
It’s the price of beer in most every European country making economic news headlines: Greece (blue), Italy (orange), Spain (red), Ireland (green), and Germany (black).
Start with a look at the black line, Germany. You see a slow and steady beer price increase, and prices that have pretty much flatlined since 2010.
That slow and healthy price inflation reflects precisely what you want for the whole nation’s economy:
Used as a proxy for stable prices for other goods, it means Germany is not seeing any big consumer or producer price shocks. You can expect steady purchasing power and stable wages. Businesses should have a fairly easy time planning for hiring, expansion and equipment spending. There’s better resource allocation throughout the economy higher productivity and ultimately, higher living standards than the other countries on the list.
Now look at the other charts: Greece is in particularly rough shape. Spain And Italy are not that far behind, while Ireland looks to be on the mend.
What a great chart!
Unfortunately, it means that the Greeks have no beer money.
photo by: Shirahama
