How does austerity work

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LeoMarr posted:

Can someone explain to me how Austerity works in economics. I understand the concept but not the implemetation and how it actually saves an economy

Poorly. It does have the advantage of causing far less harm to the very wealthy than the poor, I suppose?

# ¿ Jul 15, 2015 23:20

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# ¿ May 8, 2024 08:20

Nessus: Dec 22, 2003; After a Speaker vote, you may be entitled to a valuable coupon or voucher!

LeoMarr posted:

could austeriry work if they cut some spending but left other spending unchanged or larger

Well what is generally meant by austerity is general sweeping cuts in public payouts in the sense of government employees, and I think often pensions and benefits being extended to the public. That's different from cutting Program X and expanding Program Y since presumably the latter is for a particular goal

# ¿ Jul 15, 2015 23:30

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LeoMarr posted:

well yeah, I knew that. I really wanted to believe that austerity would have some way to work. and I guess it does if your economy can support it, but Greece's debt outweighs its GDP so it can't.

I think the issue is that it could be done in a way that 'works' to address some economic issue in an otherwise healthy economy or one with a wide industrial base or something, but when it's thrown on a small/simpler economy like a giant turd issued from banking cannons in Germany, all it accomplishes is misery.

# ¿ Jul 16, 2015 04:31

The Something Awful Forums > Discussion > Debate & Discussion > How does austerity work