Iceland Jailed Bankers and Rejected Austerity—and It’s Been a Success

from truthdig:


Iceland Jailed Bankers and Rejected Austerity—and It’s Been a Success

Posted on Jun 11, 2015
By Roisin Davis




When the global economic crisis hit in 2008, Iceland suffered terribly—perhaps more than any other country. The savings of 50,000 people were wiped out, plunging Icelanders into debt and placing 25 percent of its homeowners in mortgage default.

Now, less than a decade later, the nation’s economy is booming. And this year it will become the first culturally European country that faced collapse to beat its pre-crisis peak of economic output.

That’s because it took a different approach. Instead of imposing devastating austerity measures and bailing out its banks, Iceland let its banks go bust and focused on social welfare policies. In March, the International Monetary Fund announced that the country had achieved economic recovery “without compromising its welfare model” of universal health care and education.

Iceland allowed those responsible for the crisis—its bankers—to be prosecuted as criminals. Again, a sharp contrast to the United States and elsewhere in Europe, where CEOs escaped punishment. ............(more)

http://www.truthdig.com/report/item/iceland_jailed_bankers_and_rejected_austerity_--_and_its_been_a_success_201