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Versailles' budget policy

DCblogger's picture

b. commenting at Ian Welsh:

We let them die over here so that we can kill them over there.
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CMike's picture
Submitted by CMike on

That one will be useful.

a little night musing's picture
Submitted by a little night ... on

Krugman is saying all the right things, but he's not quite getting his shrill on to the extent that is indicated by the outrageous nature of what he describes in The Pain Caucus:

What’s the greatest threat to our still-fragile economic recovery? Dangers abound, of course. But what I currently find most ominous is the spread of a destructive idea: the view that now, less than a year into a weak recovery from the worst slump since World War II, is the time for policy makers to stop helping the jobless and start inflicting pain.

Bill Mitchell's a bit more on target:

Today I was reflecting on a book I read a few weeks ago which has been picked up by progressives and the mainstream alike as a visionary construction of the latest crisis and its remedies. It is so comprehensively wrong that I am amazed celebrated. It reinforces another theme that the mainstream conservatives are increasingly rehearsing in the media and in policy debates – governments have exhausted their options and have to take fiscal austerity measures as the only way to bring their public debt ratios under control. The point is clear – there is very little concrete argument about how the proponents of austerity see growth returning. There is a lot on cutting peoples’ living standards via prolonged unemployment, the retrenchment of pension and health entitlements etc; transferring public assets via privatisations – but not a lot on how austerity promotes growth. Further, the idea that sovereign governments have exhausted their fiscal space is just a total fallacy. They may have exhausted their political space but that is quite a different matter requiring a different solution.

[...]

The lessons from history are clear. Cutting the gas now will not only increase the burden now but the costs of the lost income and related effects endure for years into the future.

Conclusion

The people in all countries where austerity is being imposed should simply engage in mass revolts in the streets at this stage and overthrow their governments.