Austerity Pays Off for Estonia

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From Wiki:
Another example of the Keynesian story being debunked. I remember when people were claiming that austerity in Estonia would cause the sky to fall and put their economy in perpetual depression.

The unemployment level stays high (about the same as the US, as they actually use something similar to the U7 measure) and there is a jobs-skills mismatch. There is also strong growth and the government is almost debt free.