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Comment: Re:Austerity fails again (Score 1) 888 888

There are cost cutting measures that may make sense, but that's not what is meant by austerity (perhaps it should be capitalized). Austerity (capital A) would mean cutting everything from roads to healthcare, pensions (not just future, but immediate, leaving people in the lurch), everything. The net result is mass unemployment and people moving from gainful employment to the dole. That, in turn leads to less taxable income and so deeper austerity measures to compensate. In other words, a death spiral.

On the other hand, shifting things around like making do with older military hardware in order to finance stimulus can make plenty of sense. Slowly raising the retirement age can make sense even though the payoff isn't immediate.

Comment: Re:Austerity fails again (Score 1) 888 888

So who cares if the austerity theory only works when 2+2=5, do it anyway? Sure, the last 50 people who drank Drano for their cold died, do it anyway?

They can't keep goint the way they have been, but that doesn't make austerity the answer. They need an answer that at least hasn't been shown to make it worse.

Comment: Re:Austerity fails again (Score 1) 888 888

I absolutely agree that Greece has a real problem. No matter what they do, they need to balance their budget (not the same as austerity). That's the thing, the demand wasn't cut back, the demand is full on austerity. It's a demand from people who've got the religion and don't care if the math says different.

It may be that the Euro is not in their best interest. In many ways, this is a truly unique situation. Because they are on the euro, they are denied a few important tools that have traditionally been used to get out of situations like they are in.

Comment: Re:Austerity fails again (Score 3, Informative) 888 888

You'll need to do some googling, I can't teach a full econ class here. But the TL;DR version is that every country that tried austerity has recovered more slowly than every country that didn't. That and the entire justification for austerity was in that one spreadsheet that turned out to have a glaring error.

Simplicity does not precede complexity, but follows it.

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