Is there any difference between "austerity" and "deficit reduction"?

Discussion in 'Economy' started by oldfart, Oct 24, 2012.

  1. oldfart
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    oldfart Older than dirt

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    As near as I can tell not much. The only significant difference I see is that European style austerity does not include tax cuts for anyone.

    The question comes up because we have a lot of recent data on the success or failure of austerity in promoting economic growth (austerity is a total bust) and I'm wondering if and when some thinkers will argue that austerity plus tax cuts for "job-creators" is better than just austerity alone and better than demand based remedies.

    What say you?
     
  2. Quantum Windbag
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    Quantum Windbag Gold Member

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    The austerity measures in the UK did not even include spending cuts.
     
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  3. Wiseacre
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    Wiseacre Retired USAF Chief Supporting Member

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    Austerity in Europe was mostly tax hikes. Didn't have the balls to cut spending so they raised taxes, which is why their economies that followed this path are now royally fucked.

    Look at what Canada did in the mid 90s, when they were in dire fiscal straits. They cut spending. Raised taxes a little too, but mostly cut spending. And turned everything around.
     
  4. expat_panama
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    expat_panama Silver Member

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    --and that suggests that the "telling" you're capable of is not the "near" kind.

    Words mean things. Standard dictionaries say that 'austerity' means "severe and rigid economy". Extreme ultra leftists like Krugman consider the past four years of spending surges to have been "severe and rigid". Whether or not he's an idiot, the deficit has increased. The last time we shrank the deficit was from '03 to '08--
    [​IMG]
    --and the reason the deficit went down was because revenue soared after the '03 tax-cuts. Nobody says those years were 'severe and rigid'.
     
  5. TakeAStepBack
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    TakeAStepBack Gold Member

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    Didn't oldfart profess to teaching economics?
     
  6. expat_panama
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    expat_panama Silver Member

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    May have. Did I ever tell you about the year I won the Nobel Prize in Economics...
    [​IMG]
     
  7. Rshermr
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    Rshermr VIP Member

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    Expat says:
    Interesting to see clowns who think they know something about economics criticize an economist of Krugman's stature. Your comments about him are totally your opinion. You can find no impartial source that will back that drivel up.
    Then there is the part about the great revenue increase of the bush admin from '03 to '08. Lets see what happened to the deficit during that time. Must have been a great decrease in the deficit, cause we all know expat would not lie. But the facts are the deficit went from $380B to $460B during that time. And those great revenue increases. At the end of his term, Revenue had risen from $1.8T to $2.1T. Pretty small increase.
    And we had the worst economic downturn since the great depression. Want to tell me again how great those tax decreases were?? If I did not know better, I would have thought you were kidding. But you are not kidding, just trying to push the great lie, like any good con tool.
     
  8. TakeAStepBack
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    TakeAStepBack Gold Member

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    A Krugman reader and follower. :lmao:
     
  9. EdwardBaiamonte
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    EdwardBaiamonte Gold Member

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    1) a drug addict does less not more drugs to cure his addiction
    2) a family in debt tries to earn more and spend less to get out of debt
    3) a country in debt tries the same or similiar. Austerity is just another word for, "responsible".

    4) Europe is trying to steal money from Germany that Germany has thanks to austerity!!

    a bust????? too stupid by 1000% !!! austerity in Europe is working wonderfully!! Their numbers are getting better while ours are getting worse!!!The idea that tax and spend idiotic liberalism will get us to a smaller debt is identical to saying more drugs will cure the junkie. How stupid can a liberal be???

    Only a blind stupid monkey liberal would say more drugs would work. Why be so afraid to explain how on earth that is possible???? What does your inability tell us say about the IQ and character of liberals???????


    Wolfgang Schauble:

    "According to the latest estimates, the Euro zone's budget shortfall should be 3.2% of GDP this year, half the level of 2009 and well below the deficits of the USA and Japan. In the last 3 years the structural deficit- the fiscal shortfall adjusted for the change in the business cycle- has shrunk to
    2.1% from 4.6%.

    After years of steady rises in Spain Portugal and Greece and other places the current account deficits have fallen rapidly driven not just by retreating consumption and imports but also, crucially, by rising exports.

    Unit labor costs in Ireland and Greece have dropped 12% since 2009 and by 6% and 5% in Spain and Portugal respectively. As the OECD acknowledged in its recent "Going for Growth"
    the crisis has served as a catalyst for structural reform in those countries that most needed it, particularly in the labor market.

    As these trend show Europe's crises management has proved itself."
     
    Last edited: Oct 24, 2012
  10. Quantum Windbag
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    Quantum Windbag Gold Member

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    Isn't Krugman the guy who thinks the Obama job record is wonderful, yet used better numbers under Bush to prove his jobs record sucked?
     

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