Tuesday, October 2, 2012

Austerity

   Demanding austerity in the name of a balanced budget may sound good in principle, but on a national level it can be not only counter-productive but also socially dangerous.
   Conservatives insist that all citizens pay their own way in all things all the time, to take responsibility for their own welfare. This, however, is a fallacy.
   In extreme form, austerity means stop spending money. And while this may be a good idea in the short term for a family, it is not for a government. Why? Because if government stops spending money -- or at least sharply reduces expenditures -- many thousands of government employees are put out of work, lose their wages and end up unable to pay for food, clothing and shelter -- unable to support their families.
   Result: The general economic downturn that initiated the demand for government austerity becomes worse.

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