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Politics : Formerly About Advanced Micro Devices
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bentway
To: TimF who wrote (853630)5/2/2015 1:42:43 AM
From: tejek1 Recommendation  Read Replies (3) of 1578005
 
It did cut back

I showed you time and again how that statement is false. You just prefer your own narrative to reality.

No, you haven't shown me anything of consequence. You look at one country like France that did reduce spending but as the recession worsened and people protested, the gov't reversed course. So you conclude that austerity was not implemented throughout the EU. In the fact, the EU has many member states. All of those states reduced spending to some degree; some like Ireland, Portugal, Spain, Italy and Greece were forced to reduce their spending considerably. For those 5 countries, the recession has been particularly severe with very high unemployment and with debt as a percent of GDP growing:



and reduced liquidity

Are you talking about monetary policy? That's a separate issue. It appears that both as an initial response to the recession and then later in 2012 and 2013 the fed was looser than the European Central Bank, at least in terms of accumulating central bank assets with Qualitative Easing. (Its seems to be the reverse in 2011 to early 2012).

Not that the US had had a strong recovery but you are right that its generally done better than Europe. Part of the reason is the fiscal irresponsibility of some of the countries in Europe (Greece being a prime example), another part may be due to different monetary policy.

Of course, liquidity is part of the equation. Any measure that will get people to spend must be used.

Its been proven over and over again that austerity doesn't work during a recession but the particular thick headedness of the right ignores that evidence. Frankly, I think its because austerity serves other aspects of the right's ideology; that austerity forces gov't to become smaller and that's really the rights' true intent rather than ending recession.

Here's another study that undermines the pro austerity argument:

huffingtonpost.com
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