This is one thing I'll never understand. Economists tend to agree that 'extortionate' marginal tax rates (say, 90% and above for the top bracket) make little sense, partly because it can lead to the exodus of businesses and high-income people to countries with lower rates of taxation. Austerity, on the other hand, may depress consumption, raise crime levels or even, as in the case of Argentina, lead to rioting and the collapse of the government, none of which is good for an economy, and these consequences are seen as the intervention of mere politics into what would otherwise be resolved with the ease of a simple mathematical equation. The exasperated commentary from the press of Argentina (if the people would just hold still...) makes about as much sense Denis Healey's "soak the rich" (while setting in motion the process of privatization) budgets in the 70s (if the capitalists would just stay put...). But I suppose it's more complicated than that...