Austerity….the “hip” word of the common era, meaning today’s politics…….it seems that a lot of the politicos want a more austere America….no spending except for pet projects like war or such…….and they will cut taxes so there is little revenue and thus NO services will be supplied to the people that make up the society…..a good plan (that is sarcasm)…….
Austerity? What about austerity? John Case observes……..
The lesson drawn by these “realists” from the Republican, anti-democratic, soak-the-people attacks in the November 2010 elections is that there is no alternative to austerity politics. Debt and deficits are more important than jobs. This is the same philosophy that is tearing up Europe, and will likely fracture the European Union. It is the same policy that took hold of Congress in 1936-37, beat back Roosevelt reforms, and led to the famous “double-dip” in the Great Depression. That “dip” was only reversed by the massive 110 percent of GDP investments of World War II. It is the same policies for which Paul Krugman and the best minds in the economics profession have compellingly argued there is absolutely no foundation in the short run. The truth is – there will be no solution to the debt problem unless people BOTH go back to work, AND their incomes rise. You don’t really have to be an economist to understand that.
I heard a couple of pundits on the tube use Germany as an example of how to come out of this recession….they say that Germany is doing all the right things……really? What is the key to Germany’s success in this crisis?
Thomas Mucha has analyzed the situation thusly……
The brief story is that, despite its reputation for austerity, Germany has been far more willing than the United States to use the power of government to help its economy. Yet it has also been more ruthless about cutting wasteful parts of government.
After performing worse than the American economy for years, the German economy has grown faster since the middle of last decade. (It did better than our economy before the crisis and has endured the crisis about equally.) Just as important, most Germans have fared much better than most Americans, because the bounty of their growth has not been concentrated among a small slice of the affluent.
Germany has used government to prevent their slide into oblivion….and Germany is doing everything right….but it is NOT a good idea for the US to use government in such a way……why? Germany in the last 30 years has had an increase in wages of 30% and the best the US can do is 6% for the same 30 years….their educational system is better and they have protected the middle class…..
So the next time you hear about the marvelous job Germany is doing with their recession….ask how did they do it and wait to see if the answer is complete or a half truth that is normally given…..government can be used to help solve the economic problems…..but not now for it is more important to wreak unions, put minors back to work, stop gays from marrying and give all the money to the wealthy and that will solve our problems…..(thinking)….if you believe that then I have some land in Florida that I will sell you by the gallon or better yet a bridge in Brooklyn……
Interesting post.
The UK managed to sell London Bridge to an American. Rumour has it he thought he was getting TOWER BRIDGE! What does THAT tell you?
Furthermore, frankly, if the EU becomes “fractured”, then it’s a bloody good job well done in my opinion and worth almost any price.
However – austerity… We NEED austerity for several reasons, but MOST importantly, it is VITAL that the peoples of the West learn to live USING banks for their convenience, but NEVER being beholden to them or dependent on them! We MUST learn to live within our means and screw the lies the banks and money men feed us!
That said, I agree in part with what you say. It must difficult for you to understand the differences between the US and Germany, or indeed most of the other major economies of Europe (including the UK) since our welfare services have been about a thousand per cent better than yours for probably fifty years or more. OUR problem is more that there are those who abuse that welfare system and do not want to bother participating in decent society. However, what Germany has done is to use government intervention to stimulate their economy IN THE RIGHT WAY! It is MUCH better to ensure that as many have good jobs by stimulating THE RIGHT growth, than it is to pay those people to stay at home on welfare! France has got the balance way wrong and the UK DID have it wrong, but we are reorganising things on a more sensible basis (you should hear the cheats, swindlers and over-protected state employees whine and moan about THAT! I LOVE to listen to them howl! Serve the f*ckers right!
The US (and the UK under Labour) have got it ALL wrong. Stimulus packages that only benefit the rich, the wankers – sorry, that should be BANKERS – the idle and those who produce NOTHING tangible or of benefit to the country are just an ever increasing hole in the universe into which they ar pouring OUR money.
I was thinking of a new campaign – and since you Americans love then so much, it has an acronym: SOC-FAB. In case you can’t guess, that stands for Save Our Country – F*ck A Banker (like they did us) – whaddya think? 😈
Austerity is a good thing….but it must be everyone….not just the poor or those that actually work and pay the damn bills……
Thank you! Like the banks who got the bailout and their CEOs are still living the high life? And how about making corporations like GE pay some taxes.
Spinny, watch out……things to come for the US…I even heard of a gov trying to privatize a parkway…….
Exactly – though the rich will hardly notice the difference, but I don’t care much about that – just so long as they chip in their share of what has to be paid. Largely, in the UK, they have to, though there are (of course) exceptions…
That is all I am asking….we ALL pay the same…….IMO, it is fair and just
But it’s only in despotic places like the US that this doesn’t largely happen as a matter of course…