Thursday, June 21, 2012

Study on the Effects of Austerity

Republicans today recommend austerity in the face of our economic problems. The same kind of austerity we are watching fail so spectacularly in Europe right now. The idea is that austerity boosts investor confidence and spurs growth. But it's not panning out.

A recent study by the IMF looked at 173 attempts to bring growth in the face of an economic downturn through austerity over the last 30 years. The result? Austerity under these conditions does not produce growth, reduces wages, and increases long term unemployment.

Given that this strategy always fails, why would Republicans pursue it? Possibly it's just a tool to undermine Social Security and other welfare state measures, which are very much hated by some conservative politicians and their backers.


Chad said...

Your finger is working?

Possibly true and rightfully so. I will keep this ultimately very very short. The reason for the need for drastic austerity is due to the socialist ideas that put them in that place. Austerity works, but just not the way that you and whatever organization you mentioned wants it too.

Socialism has always, always, always caused the need for austerity.

Jon said...

I peck at the keys. It's slow.

Since you assertions are offered without evidence there's nothing for me to reply to, so my reply is short as well.

Examinator said...
This comment has been removed by the author.
Examinator said...

Your response is an opinion the basis of which is unknown given your reticence to include supportive fact or a cogent thought process.

Socialism in and of its self isn't any more evil or destructive than capitalism.

The problem is the excesses and the propensity to see everything in terms of extreme black or white.
As I've said before life simply isn't made up of absolute either or. Therefore it is fallacious reasoning to blame either for the problems we see.
Think of it in terms of a delicious stew that has too much salt.....the problem isn't the stew its the excess of salt.
My point is it is what we (the system, people collectively and singularly) have done TO the 'stew' which is the problem.
You should get past the simplistic pigeon holing and drill down a bit for the REAL problems... Most of which with common sense and less reactionary partisanship can be fixed or at least a workable consensus could be reached.

Chad said...

Ex, think of the fact that I can make my own stew and it will be seasoned exactly as I wish.

Additionally if I am forced to share my stew with others, I simply would not care if you felt there was too much salt - it is not your stew.

Chad said...

Jon wants sources which I do not have time to provide, but how about common sense as my source.

How much money does Spain have? How about France? How many Trillions in debt is the US again? What is the largest burden to the debt in all these places?


Promises made that could never be kept, by big brain morons and those actions are now falling apart in a big way.

Tough decisions need to be made by people wearing big boy pants, but the Liberal Mob World has grown to become a majority.

Reminds me of the movie Lion King. Once Scar made an alliance with the Jackals - the food and water all dried up on pride rock. The Jackals (recipient class) brought NOTHING To the table, but expected to eat an equal share as the lioness who had to do all the hunting (earning class). Once you hit that tipping point it becomes very dangerous. Also in the movie was a battle at the end between good and evil - as always good won and the Pride Rock Eco system returned to normal - life was good.

The recipient class is the Jackals in the movie - everything they touch they destroy.

Even kids movies can be instructional.

Jon said...

SS and Medicare on net have generated a surplus since they are funded with dedicated taxes. So how is it that entitlement spending has caused the debt?

No, your common sense is not a good source.

In EU the nations with the highest level of government spending as a % of GDP are doing the best. It's those that have reduced it per Republican orthodoxy that are in the toilet (Greece, Spain, Ireland).

Jon said...

Chad , what if in the process of making your stew you pollute the land, deprive starving people of food they could otherwise collect on land you own, and create large segments of criminals desperate for scraps so they end up robbing me so that you can have 50 tons of stew that you can't use?

You are not an island.

Examinator said...

Unfortunately you misinterpreted the analogy “the stew” was in relation to the COMBINATION of ideologies that is the reality of the government in a society. A point you didn't answer or even acknowledge.
your standard modus operandi seems to be to fixate on a simplistic level of analysis and state and restate that point rather than analyse your conditioned reactionary dogmatic stance regardless of the facts put before you.
As I've said/demonstrated many times “if the answer is simple it would have been done already... and if the answer is simple then it must be either the wrong question or inanely myopic one.”
I've gone to lengths to show you that, as Jon said "you are NOT an Island", and that there are ALWAYS consequences to others from your actions (in a society).
I've also demonstrated that YOU ARE a beneficiary of the 'socialist'(sic)system. Another point you ignore or refuse to acknowledge.
Like most “Righties” (?) you assume absolutes ….i.e. if something isn't to your personal benefit, status et al it's 'socialism' (?) = Evil.
The real flaw in your dogma is it's self interested spin conditioned emotional based re- definitioning of language/ thought processes. Ultimately your (generalising....pigeon holing) imprecision in what you say (a product of conditioning) makes reasoned discussion with you difficult.
It is this (although not exclusively) 'American arrogance' some bizarre (Malthusian) delusion, that what suits us (me) is not only paramount but indisputable. That America, its system, its people are the pinnacle of humanity. Thus justifying their great Patriarchal systemic imposition of its will on everyone else. At the more prosaic end (the rump end of society) it translates into galloping ignorance, indifference of everyone else in the selfishness , delusion that they are Number 1 in every sense of the term and everyone else is number 2's (all implications intended).
NB this is a specific indictment of those those leading citizens who should know better but wantonly WILL NOT SEE (for self interest/comfort) and that DOESN'T INCLUDE everyone in the USA.
As Jon IMPLIED we are ALL responsible (selfishly even) for the the state of the FINITE world we live in and our individual actions do matter.