Friday, May 7, 2010

Austerity

The government has announced a 3-yr spending freeze. It wasn't so long ago that we were told that no austerity program would be necessary or desirable. The question of whether austerity is desirable, particularly now, remains alive. I fear that the world is about to repeat FDR's mistake of anticipating the end of the crisis and cutting spending too soon, the effect of which was to precipitate a new downturn. This is a dangerous moment, and France seems to have been the first to retreat.

5 comments:

Cartesian said...

But France seems to have spend more than Germany for example.

Cartesian said...

Sorry "spent"

satchmo said...

Art, I share your concerns. The proverbial koolaid of neoliberalism still seems to be having its effects.

MYOS said...

What do you think of this column?
http://www.pauljorion.com/blog/?p=11414
I don't know enough to judge its validity.

FrédéricLN said...

Be sure the Sarkozy administration would spend any money she would find, if she could still find some money somewhere.

If not, she will requalify poverty as a virtue, whatever the proverb.