re: #170 researchok

Austerity is not ‘dumb’ when needed.

All of Europe and the IMF can’t be wrong in demanding austerity. That, in addition to strong fiscal discipline and responsible tax policies ae necessary for overall economic health.

Spending is a necessary part of a national financial strategy, but like every thing else, it has to be disciplined spending. If we taxed corporations and the rich 100%, we could not run the government for more than half a year.

Like Obama has said on many occasions, fiscal policy requires a cut in spending in addition to higher taxes. Counties, municipalities and even states are in big trouble. We can’t buy or tax our way out it.

Let’s not lose sight of the fact that current Eurozone policy is set by better-off countries and being imposed upon weaker ones. The “austerity” is being rather unevenly applied, and in the case of Greece punitive to degree that not long ago there were discussions about whether the intent was to force the country out of the EU.

Also, let’s not overlook what kind of policy put which countries in the hole financially…Italy, Spain, and Greece all went on a laissez-faire binge.