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LeoMarr posted:so austerity doesnt work and its obvious There are some really, really rich people that can become even richer if governments swing toward austerity. Lower taxes tend to mean more to the rich than the not rich and the rich can use their now larger incomes to become even more rich. Really that's all it boils down to. It "works" in that governments going big on austerity programs means the rich get short term gains. Of course in the long term it causes problems and reduces the velocity of money because the rich will take the money that they're now getting more of and largely just sit on it like it's a video game scoring system.
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Jul 16, 2015 04:33
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Bwee posted:Can someone please explain the pro-austerity argument, I understand that it's a "rich get richer" thing but they can't sell it like that 1 - Government spending is inherently wasteful and free market solutions are always more efficient. Reducing it reduces waste. 2 - Reducing taxes puts more money in your pocket because you're paying less. 3 - Reducing taxes puts more money in the pockets of the rich and they'll spend that creating businesses. 4 - More freedom. Removing the government from more things means more freedom. Smaller government = freedom. 5 - Laffer Curve. Reducing taxes actually increases government revenue. Yes the arguments in favor of austerity are stupid.
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Jul 16, 2015 05:19
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Abner Cadaver II posted:One part of the answer is that about 2/3rd of the US federal debt is held domestically by US citizens and institutions, which is even better than than debt held by like Luxembourg. Isn't the U.S. debt actually a smaller percentage of the GDP than Greece's was? I remember reading that the interest on Greece's debt alone was like 60% of their GDP or something insane.
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Jul 16, 2015 22:16
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