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View Diary: The U.S. has learned nothing from Europe's deadly obsession with austerity (105 comments)

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  •  Most politicians do not understand economics (2+ / 0-)
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    JerryNA, RenMin

    The diary could equally well say that under DEFLATION (which is what austerity leads to), your debt load is not decreased but your ability to earn money is.

    How does that make it easy for the economy to flourish?

    If you can't pay your bills you hurt, but so do your creditors.

    Am I the only one, or have others noticed that a payment that runs late (maybe because you were on vacation) gets you a dunning letter right away, without regard to the fact that you pay on time and have done so for lo these many years?

    That says to me that creditors are getting VERY antsy about credit that they issue.  THAT is not good for the economy either.

    "The battle, sir, is not to the strong alone; it is to the vigilant, the active, the brave." -- Patrick Henry

    by BornDuringWWII on Sun Apr 07, 2013 at 07:56:05 PM PDT

    •  Re (0+ / 0-)
      The diary could equally well say that under DEFLATION (which is what austerity leads to), your debt load is not decreased but your ability to earn money is.

      How does that make it easy for the economy to flourish?

      If your costs fall faster than your earnings do, deflation is a win.

      Also, in deflation a lot of debt is simply defaulted away. Debt that cannot be paid back, will not.

      (-5.50,-6.67): Left Libertarian
      Leadership doesn't mean taking a straw poll and then just throwing up your hands. -Jyrinx

      by Sparhawk on Sun Apr 07, 2013 at 08:45:44 PM PDT

      [ Parent ]

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