Wednesday, August 18, 2010

If the deficit hawks win...

This is what our future could look like.
The austerity measures that were supposed to fix Greece's problems are dragging down the country's economy. Stores are closing, tax revenues are falling and unemployment has hit an unbelievable 70 percent in some places. Frustrated workers are threatening to strike back.
Actually, if you read the article, Greece looks a lot like us right now even though the measures did cut their deficit.
The problem is that the austerity measures have in the meantime affected every aspect of the country's economy. Purchasing power is dropping, consumption is taking a nosedive and the number of bankruptcies and unemployed are on the rise. The country's gross domestic product shrank by 1.5 percent in the second quarter of this year. Tax revenue, desperately needed in order to consolidate the national finances, has dropped off.

...The package included reducing civil servants' salaries by up to 20 percent and slashing retirement benefits...
Slashing salaries and benefits for government and union workers is a popular theme among my "fan club" at DetNews lately. If I was inclined to engage with them on it, I might mention that these same people are always accusing me being jealous of the success of the greedy CEO class but base their "logic" on demanding these cuts for working people on the basis that they're making X% more than other workers.

I could have also pointed out that these same guys are always accusing me of basing my positions on "my emotions" instead of logic, yet they argued without irony that the Park51 cultural center shouldn't be built because it hurts their feelings. Admit I'm sometimes jealous that I can't reach that level of cognitive dissonance. I'd probably sleep better.

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Anonymous Ruth said...

The 'supply side' ideologues are incapable of the simple equation that in a consumer economy, it is necessary to have consumers. To the mind of the committed wingnut, business creates jobs and makes the economy healthy, no matter how little it puts into the pockets of those it wishes to sell its goods/services to. The past ten years have proved that is not working. When confronted with simple facts, their heads explode. Unfortunately, the economy also nosedives when they get to put their ideology into effect.

6:26:00 AM  
Blogger Capt. Fogg said...

"Unfortunately, the economy also nosedives when they get to put their ideology into effect."

Each and every time, but a lie only needs repetition to override the truth.

11:41:00 AM  
Blogger Libby Spencer said...

That's the part that blows me away. The empirical evidence is right before their eyes but their short little spans of attention apparently allows them to believe that it's all the Democrats fault.

3:28:00 PM  

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