IMF proved massive austerity does not work, so why do we do it?
The debt limit crisis will end with the Dems pretending to “fold because of the need for stable markets” as they do what the rich and corporate controlled Obama wants them to do.
It does not take more than a few brain cells to note that the Brits austerity program is a failure with the deficit this year higher than last year. Like who knew that government spending cuts kill demand because they are never quickly, and often simply never, replaced by new private spending, causing slower economic growth – ask the IMF how well harsh austerity worked in South America and Latin America over the last 30 years. The harder you squeeze the more likely the IMF outcome was the IMF not getting repaid. Indeed, unless the goal is to watch folks stave, one knows that a slowing economy results in higher social welfare payments — more government spending – so how is it “best practice” to try to strangle the economy into surplus. But the poor Greek’s intelligent comments are falling on deaf German ears, just as Democratic Party goals seem to always die when then must get past Obama.
So as UK borrowing for April and May 2011 is up from 25.9 bn pounds to 27.4bn pounds, we proceed on the same conservative/tea party/GOP/Obama flight plan.
Now ask me who I am going to vote for in 2012.