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View Diary: Austerity isn't dead... but it should be (132 comments)

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  •  Austerity is when the government's response (4+ / 0-)

    to a period of economic recession/depression is to cut spending. Under most - but not all - circumstances surrounding recessions, this aggravates the loss of economic activity, as government spends less on goods & services which has a flow-on effect to the private sector. As a side effect, one near-universal aspect of austerity is that public spending that benefits the lower and middle classes is cut first and hardest in an effort to induce the wealthy to undertake more economic activity. It never works, although the wealthy are more than happy to keep their increased piles of money.

    In short, in most recessions (including the present one), austerity is simply a fancy word used to describe digging the economy into a deeper hole for the benefit of the 1%.

    "Violence never requires translation, but it often causes deafness." - Bareesh the Hutt.

    by Australian2 on Sun Apr 28, 2013 at 10:20:18 AM PDT

    [ Parent ]

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