Krugman: Germany did less austerity than almost anyone else in the euro area.
There is an almost perfect inverse relationship between austerity and growth. And yet there are those claiming more austerity is needed?
Why did austerity fail? The Poor Behave Differently From the Rich
models failed to predict the consequences of the austerity programs that several European countries adopted in 2010. It turned out that actual people didn’t behave like the imaginary proxy. Economists are learning that the poor and the wealthy respond differently to austerity and stimulus. This could present challenges to politicians. If people behave differently, then policy might have to treat them differently.
Austerity was doomed from the start.
The Facts Are in: Austerity Politics Doesn’t Work
The problem is that those demanding Austerity look at the failures and claim they haven’t been working because they aren’t Austere enough.
Austerity pushing Europe into social and economic decline, says Red Cross
“Many from the middle class have spiralled down to poverty. The amount of people depending on Red Cross food distributions in 22 of the surveyed countries has increased by 75% between 2009 and 2012. More people are getting poor, the poor are getting poorer.”
Sad thing is that many will read that and blame the Red Cross handouts for creating poverty and dependance.
Austerity isn’t working.
Austerity. The best way to go from developed nation to emerging market.
A major fund manager has reclassified Greece from a developed to an emerging market, in an unprecedented move reflecting the “unfortunate economic tailspin” of the Greek economy, which has threatened the future of the euro.
Of course, the solution will be, More Austerity! It always is.
Paul Ryan Claims His Budget ‘Preempts Austerity’
House Budget Commitee chairman Paul Ryan (R-WI) says that his plan to slash government spending on programs for the poor while increasing defense spending and giving tax cuts to the wealthy would actually “prevent austerity.”
We must pass austerity to prevent austerity? Not from the onion. Ryan is a smooth talking confidence man. Nothing more.