[lbo-talk] 'Fairy Tale' of Austerity Is Finally Dead

[ken hanly]

 The austerity policy has nothing to do with a confidence fairy. The confidence fairy is meant simply as cover for a policy that is meant to wreak havoc with the social safety net, purge pensions, create a larger reserve army of the unemployed and destroy union power. At the same time state assets will be sold off at fire sale prices and expectations of the populace lowered. The policy is working. Decline in GDP is simply a collateral negative effect but it can also increase the demand for more tax cuts and policies favoring business to promote growth.Over the long term the policy makes perfect sense.

Cheers, ken

 
Blog:  http://kenthink7.blogspot.com/index.html
Blog:  http://kencan7.blogspot.com/index.html

________________________________

 From: Fernando Cassia <fcassia at gmail.com>
To: lbo-talk <lbo-talk at lbo-talk.org> 
Sent: Saturday, April 28, 2012 5:31:47 AM
Subject: [lbo-talk] 'Fairy Tale' of Austerity Is Finally Dead

 
'Fairy Tale' of Austerity Is Finally Dead
Paul Krugman: Europe realizing those policies made things worse

Newser) – Paul Krugman doesn't use the words "I told you so," but he
does pronounce the notion that austerity measures would fire up
Europe's economy good and dead. European policy-makers had the
misguided idea—one embraced by Republicans in the US—that cutting back
on spending would spur confidence, he writes in the New York Times.
Instead, we see nothing but "Depression-level slumps" all over Europe.

The good news is that Europeans—witness the Netherlands elections, for
example—are finally waking up, writes Krugman. "Suddenly, everyone is
admitting that austerity isn't working." The bad news is that the
policies in place probably won't change because of fear-mongering.
"We're now living in a world of zombie economic policies," writes
Krugman, and "it's anyone's guess when this reign of terror will end."

Full story at: http://www.nytimes.com/2012/04/27/opinion/krugman-death-of-a-fairy-tale.html?_r=1&pagewanted=all

-- 
During times of Universal Deceit, telling the truth becomes a revolutionary act
- George Orwell

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