Well it seems Austerity is making another unnecessary panic - this time the little island of Cyprus is having dramatic ripple effects. Its unnecessarily shaking the confidence of investors and savers alike.
Austerity as its defined - budget cuts and restrictions during a recession - is a terrible idea IMHO. Again one need only look as far as your front door. The US, while experincing slow growth is doing ok and Europe is a disaster. The Market agrees - as many know the US at/near all time highs. We have a MASSIVE debt in the US that must be paid off, but the time to pay it off is NOT during a recession. Mistakes of the past are made worse when more mistakes are made.
A simple analogy. If you had little savings and lost your job, would you think it wise to pay off your credit cards,and thus use up your little savings? Of course not. How would you eat, pay your mortgage, live with no income and savings? Is Germany right that much of the rest of the EU lived beyond their means? You bet, but punishing those countries NOW only hurts them all in the long run. Pluck your eye to spike your face.
Paying off debt is a great idea - just not when you lose your job and have no savings. Then its a terrible idea. Then it creates unnecessary panic, and when transposed to nations leads to worse unemployment because the middle/lower class have no money to spend. This in turn leads to wars and civil unrest.
Another analogy, if you have made the mistake of not working out and eating right, and then have a heart attack, is it a good idea to hit the treadmill 1 day after your operation? Nope. Mistakes of the past are NOT always fixed by immediately implementing the solutions you should have been doing all along.
A time and a place. Lets hope common sense prevails with our EU friends like it has here. Lets also hope that in the coming years with a strong economy, we do pay down our debt. (eg we begin hitting the treadmill)
These policies affect us all.
The scary thing about Cypress is the way the socialist political powers simply took 10% of people's bank accounts. We have a socialist in the White House, his accomplice in charge of
the Senate, and another accomplice, Pelosi, that he is doing all he can to put back in charge of the House. If this gang gets control of both houses we could well see the same or worse here.
Recall, we have an intellectually dishonest Chief Justice who seems to think the govt can do almost anything if it calls it a tax.
Oh lovely, so ignorant. Regulated capitalism is the best form of government, but governments are needed. Without regulation, free markets turn our society into jungle kill or be killed metality. Did you know that in 2007 Pfizer experimented on African children with a drug in order to skirt the FDA. Children died. Nice huh, but we should trust the private industry more than governments? Truthfully we should trust neither.
So if you think that socialism doesnt work, perhaps you should build your own roads and have your own private standing army. WHAT IS THE MILITARY but defense socialized? Funny that some folks are ok with putting defense in the hands of government, but not the care of others health and well being. There are some things that the private industry either cannot do or we as a nation decide its in our best interests for private industry to NOT do. The military is a great example. Tell me, would you want a private system for our military? If so I hope you have a LOT of money because if not, you and yours would be in deep do do.
As far the Austerity arguement, google this article.
"The Economic Argument Is Over — And Paul Krugman Won'
From the article:
The argument is over. Paul Krugman has won. The only question now is whether the folks who have been arguing that we have no choice but to cut government spending while the economy is still weak will be big enough to admit that.