Live at the Rolling Stone! Austerity…It Doesn’t Work, So Why Do It?

June 18th, 2012 at 5:18 pm

Link here.  Companion piece to this.

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3 comments in reply to "Live at the Rolling Stone! Austerity…It Doesn’t Work, So Why Do It?"

  1. Misaki says:

    >We’d better get straight on all this if we’re going to fix it, not just for this go-round but for the next recession. Imagine arguing for Keynesian jobs measures—another big stimulus—the next time the economy heads south. With all this misunderstanding in the air, there’s just no oxygen for such arguments.

    But economists were sure that the age of recessions was over, since monetary policy could fix everything..!

    I might as well mention: Job creation without higher government spending, inflation, or trade barriers:

    >As a prominent German economist told me, “we know what we have to do, we just can’t let anyone see us doing it.”

    The chart from from Jay Shambaugh shows/suggests that trade imbalance is the fundamental reason for economic problems, and that unlike the US “not enough rich people” really is a problem in countries with high bond interest rates.

    So does it not make sense for Germany to “force” those countries to use the accelerated work week, which allows local workers to compete on price when they cannot compete on absolute quality?

    Instead of buying the €50 item made in Germany, they would instead buy the €10 item made locally.

    It’s so simple.

  2. Rima Regas says:


    I’ve been seeing different versions of this lately. It’s on enrollment numbers in public schools versus hiring of staff. The numbers are so astronomical, they make no sense to me. I suspect this is the right wing’s test balloon before they mount a renewed attack on specific public sectors.

    I thought you might want to look into this and address it in some fashion.

  3. Bumpa says:

    …The growth of the LIE Ronald Reagan put forth, that “Government is the Problem, not the solution.” and thereby eliminating any effective solution to the problem at hand. The Right keeps harping about how we can’t possibly have a government stimulus as it would create debt, but that doesn’t answer the question of who is going to rebuild a crumbling infrastructure when the private sector won’t budge to do anything about it, and if they ever did, the costs would be astronomical. The LIE must be debunked if we’re to see our way out… otherwise we’re facing a country without available education, without personal protections, without the rule of law, a country where “freedom” means that “You Are On Your Own”