On one hand:
Cut services, cut social programs, cut entitlements, force wages down and increase underlying unemployment. All this leads to a reduction in revenue and the government spending is cut once again.
On the other hand
Cut taxes once again reducing revenue and you increase the deficit.
The end result is a country that has lost hope.
Real wages [bar the top 1%] have been stagnant if not falling for decades, slowing down economic growth and fueling economic injustice.
The question still remains is how do we increase revenue and stimulate the economy enough to reduce the deficit since austerity is a one way street leading to a reduction in revenue and stifling economic growth. Austerity is a short term methodology for stemming an economy's hemorrhaging but as a long term solution it is like cutting your wrists.
To have a vibrant economy people have to be able to work for good wages so that they have disposable income thereby stimulating the economy further.
Where are these jobs?
I can think of a whole infrastructure in near collapse.
I can think of a whole renewable energy sector just waiting to be stimulated.
It has been shown time and time again that trickle down does not work as the whole objective is enrichment of a few and who now have no incentive to create due to the tax cuts enacted over the last forty years. Why cap the richest earnings when there is no penalty for excess? Who circulates wealth more efficiently the uber-rich or the middle classes? When you lock wealth away it does no work.
In DC not are they only planning a decade long austerity drive they are refusing to stimulate the economy, you cant do one without the other; all you end up with is a downward spiral.
Tax cuts and wars threw us into this mess, how about we stop both?
How about we actually use the revenue and savings generated to invest in our own nation to create more wealth?
Austerity is admitting defeat before even trying to do something different.
I know it is very popular in DC and elsewhere but at some point it will reach its logical conclusion and we will all end up poorer for it..