Looks like it has given the Brits a 'triple dip' recession. A lesson in the folly of allowing right wing politics to replace rational economic policy making. A lesson in the silliness of the "we must have a balanced budget" grunt
Or was it the many years of continued deficit spending and a mounting government debt that finally resulted in a recession? There would not have had to be austerity if the government had not gotten into debt in the first place. Your position makes absolutely no sense. Can you please explain yourself? Deficit spending causes the problems. If stimulus spending really worked, the government has been doing it for many years now, and yet still the economy tanked. And you want even more stimulus spending?? This cannot go on forever, they are just kicking the can down the road while the debt piles up with compounding interest.
A nonsensical question. Neo-liberalism delivered the recession; austerity has maintained it Austerity is irrationality. With the reduction in economic activity, it actually increases debt problems. Its dogma run amok This is an ignorant statement. Government interventionism has maintained capitalism, despite its tendency towards crisis. Even good ole Reaganomics realised that, using counter-cyclical military expenditure as a fiscal means to deliver growth. I'd go for replacement of capitalism. This has nothing to do with my views. Its a mere reference to economic rationality. Even the conservative IMF has understood the problem
Couldn't care less what the collective effect on the economy is, I'm concerned with individual freedoms.
So you'd be in favour of eliminating rational macroeconomic policy? Given that will destroy economic activity and therefore eliminate exchange opportunity, that would be coercive in itself!
Permanent deficit spending has the problem that when you need credit to get over a rough patch - your credit worthiness is at it's lowest. That applies to people and governments. People rarely have any alternative but austerity. What makes government special?
That you have to ask is the problem! Austerity ignores economic reality and the integral nature of government intervention. The triple dip gives the game away somewhat
Today's problem is austerity, because the electoral incentives that politicians face reward them with permanent deficit financing. How many multiples of the annual GDP does the debt have to get before austerity is justified?
Nope. There is zero reason for irrational austerity. Those that are concerned about debt can still realise the sense, for example, in maintaining capital expenditures when suffering recessionary problem. Austerity has destroyed economic opportunity and ironically increased debt. Its stupidity, but that doesn't stop right wing dogma
Put the koolaid down and answer the questions. How many multiples of the annual GDP does the debt have to get before austerity is justified? Is deficit spending justified during a good economy? If so, when is deficit spending not justified?
The questions are irrelevant. We know that austerity has given us double dip. We're now moving to triple dip. Want to cut debt? You don't adopt irrational policies in a recession that increase debt by destroying growth
