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(28-Jan-2012 at 15:04) ![]() |
Have spending cuts failed?
"Inappropriate spending cuts could "strangle" growth prospects, the head of the IMF has warned."
"There is a risk that every disappointment in growth will be met with an austerity that will feed the decline, and that is a cycle you have to arrest to solve financial crises," Mr Geithner said." "Financier George Soros told the BBC that the fiscal cuts, which Germany supports, could even lead to a "lost decade" of economic stagnation in Europe. "This German insistence on austerity could destroy the European Union," he said." It is now four years since the Bush Republicans wrecked the US economy, which took the global economy with it. After four years of spending cuts and austerity measures, backed by pretending that debt caused the financial collapse even though it didn't, the world economy is still stagnant. Could it be that cutting spending simply does not work? Logically, I see very little reason why it should. The 'cut spending' brigade seem to think that money being spent just vanishes into a black hole, but they are wrong. One mans spending is the next man's income, who will go on to spend his income thus providing somebody else with an income, and so on down the line. Those ranting for 'cut spending' are effectively saying "Lets reduce a whole load of incomes - that should increase the economy!" which is logical nonsense. An oxymoron even. Is it time to stop messing about trying to fix the wrong problem, with spending cuts that don't work? "Patriotism is the last refuge of a scoundrel." But let it be considered that he did not mean a real and generous love of our country, but that pretended patriotism which so many, in all ages and countries, have made a cloak of self- interest. Last edited by Voice of Reason, 28-Jan-2012 at 15:13. |
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