Why did austerity fail? The Poor Behave Differently From the Rich

Why did austerity fail? The Poor Behave Differently From the Rich

Austerity pushing Europe into social and economic decline, says Red Cross

Austerity pushing Europe into social and economic decline, says Red Cross

When Europe began its infatuation with austerity, top officials dismissed concerns that slashing spending and raising taxes in depressed economies might deepen their depressions. On the contrary, they insisted, such policies would actually boost economies by inspiring confidence. But the confidence fairy was a no-show. Nations imposing harsh austerity suffered deep economic downturns; the harsher the austerity, the deeper the downturn. Indeed, this relationship has been so strong that the International Monetary Fund, in a striking mea culpa, admitted that it had underestimated the damage austerity would inflict.

Austerity, Italian-Style – NYTimes.com

And the response is always the same. It wasn’t enough austerity! They didn’t go far enough! Cut more!

Britain is officially in double-dip recession, and has achieved the remarkable feat of doing worse this time around than it did in the 1930s.

Cameron’s Remarkable Achievement – NYTimes.com

The first rule of austerity club is that you don’t talk about anything except austerity.