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. […]
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.” […]
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 […]
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! […]
Japan, which is spending heavily for post-tsunami reconstruction, is growing quite fast, while Italy, which is imposing austerity measures, is shrinking almost equally fast. There seems to be some kind of lesson here about macroeconomics, but I can’t quite put my finger on it If austerity worked, the bars for the UK and Italy would […]
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 […]
If austerity worked, the trend lines would not look they way they do. Maybe it doesn’t? (via Brad DeLong: The “Recovery” in the G7)
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.