Wednesday 15 May 2013

Austerity

I could write more on pursuing austerity at the wrong time is always bad for the economy.
 but why bother.

Paul Krugman has an excellent article in the the New York Review of Books  how-case-austerity-has-crumbled.

And then Noah Smith has a very thoughtful piece on why-do-people-support-austerity.

Both highly worth reading.

As for something different Steve Kates shows he is mad again.
Just to help out Steve's therapist:

  • Getting the budget back into balance when the economy is quite healthy is a Keynesian notion and was sold by Treasury as such.
  • Growth started in Australia well before there was a change of Government 
  • Growth slowed a tad after the first budget but then went back to where it was going after that.
  • Angel Merkel's prescription has really worked in Europe hasn't it!!
Finally perhaps Katesy can tell us why only one case of austerity succeeded in Ireland and why two failed dismally

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