People Are Finally Figuring Out: Austerity is Stupid

Discussion in 'Economics' started by Banjo, Apr 28, 2012.

  1. oh, ok, for a moment there I had hope, now I guess I'll go back to being a grumpy old man
     
    #31     May 11, 2012
  2. It was world class infrastructure but it is now rapidly decaying. And if you add in the intellectual infrastructure -- schools, job training etc. -- it is already quite broken. No society can survive without political leadership that is willing to make a hard decision or two on finance. If we do not get a grip very soon our ability to finance this mess will turn and once that happens it very quickly gets to be too late.

    It's a hard job now but an impossible job in five years or less!

     
    #32     May 11, 2012
  3. Ed Breen

    Ed Breen

    Oldtime, take hart, no need to be grumpy, this is just the material world. I got this note from a friend that might give you some encouragement...

    "The Baltic nations of Latvia, Lithuania and Estonia provide good examples of successful fiscal adjustments. In the last few years, and contrary to the rest of Europe, the Baltic countries have focused on significantly cutting government spending without equivalent increases in taxes. As a result, the Cato Institute's Dan Mitchell reports, between 2008 and 2011, Estonia and Lithuania reduced nominal spending by 5 percent, and Latvia by 11 percent. France and the United Kingdom increased spending more than 8 percent over the same period, and Spain and Italy increased spending by 3 percent. In contrast to these others, the Baltic states have experienced some of the largest economic gains in the world: Between 2009 and 2010, Estonia's economy rose from an annual GDP growth of minus-13 percent to 3.1 percent.

    Sweden is another good example. The data show that after the recession, Sweden's finance minister, Anders Borg, not only successfully implemented reduction in welfare spending but also pursued economic stimulus through a permanent reduction in the country's taxes, including a 20-point reduction to the top marginal income tax rate. As a result, the country's economy is now the fastest-growing in Europe, with real GDP growth of 5.6 percent. Unsurprisingly, the Financial Times recently declared Borg the most effective finance minister in Europe.

    While the debate over austerity continues, the evidence seems to point to the conclusion that austerity can be successful, if it isn't modeled after the "balanced approach." It's a lesson for the French and other European countries, as well as for American lawmakers who often seem tempted by the lure of closing budget gaps with higher taxes."

    Source:Veronique de Rugy is a senior research fellow of the Mercatus Center at George Mason University.
     
    #33     May 11, 2012
  4. zdreg

    zdreg

    "Corps have plenty of money to invest, but no customers. Start at the bottom and stimulate consumption and investment will follow."
    every lefty regime has tried and failed with this tactic
     
    #34     May 14, 2012
  5. ok, we'll do it your way and just keeping taxing them more and more. Is that the righty way?
     
    #35     May 14, 2012
  6. zdreg

    zdreg

    who is them?
     
    #36     May 14, 2012
  7. the1

    the1

    A solid rule of law that incarcerates more men and women, per capita, than any other civilized country in the world.

     
    #37     May 14, 2012
  8. the1

    the1

    Better to have money to pay the debt with than no money to feed yourself with.

     
    #38     May 14, 2012
  9. jem

    jem

    I need to mark this contribution for future reference when socialists misrepresent things. Very nice post.
     
    #39     May 14, 2012
  10. =============
    Traveler-Trend;
    Where are you coming from;
    socialism /Greece??LOL[A funny comment, more so than a serious question]:D
     
    #40     May 14, 2012