You are here

The Myths of Austerity

Section(s): 
    \r\n
  • The next time you hear serious-sounding people explaining the need for fiscal austerity, try to parse their argument. Almost surely, you’ll discover that what sounds like hardheaded realism actually rests on a foundation of fantasy, on the belief that invisible vigilantes will punish us if we’re bad and the confidence fairy will reward us if we’re good. And real-world policy — policy that will blight the lives of millions of working families — is being built on that foundation.
  • \r\n

  • This isn’t a recovery, in any sense that matters.
  • \r\n

\r\n

Paul Krugman, New York Times | NY

Submitted by Evergreene Digest Contributing Editor Thomas Sklarski

John Darkow

\r\n

When I was young and naïve, I believed that important people took positions based on careful consideration of the options. Now I know better. Much of what Serious People believe rests on prejudices, not analysis. And these prejudices are subject to fads and fashions.

Which brings me to the subject of today’s column. For the last few months, I and others have watched, with amazement and horror, the emergence of a consensus in policy circles in favor of immediate fiscal austerity. That is, somehow it has become conventional wisdom that now is the time to slash spending, despite the fact that the world’s major economies remain deeply depressed.

More...

Related:

This Is Not a Recovery, Paul Krugman, New York Times | NY

\r\n

    \r\n
  • This isn’t a recovery, in any sense that matters. And policy makers should be doing everything they can to change that fact.
  • \r\n

  • GDP Revised Down: Economy Grew At A Much Slower Pace Than Previously Thought
  • \r\n

  • Tax Jujitsu: Why Democrats Should Propose a “People’s Tax Cut”
  • \r\n

  • Jobless? Your leaders are at ease with that.
  • \r\n

\r\n