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Public sector workers and others protest in Italy for supposedly government austerity measures.
All over southern Europe people are protesting. One of their biggest complaints is against government austerity measures. However, a look into the books shows there really isn't any austerity going on. Consider Italy. Here is Italy's real rate of increase of government debt according to Wealth Cycles:
- Under ? 2 billion per month up until end-1999
- ? 3.8 billion per month 2000 - 2007
- ? 6.4 billion per month 2008 - September 2011
- ? 9.5 billion per month September 2011- 2012 (Monti?s ?Austerity?)
The last bullet point is especially telling. Italian rate of increase of debt rose to 9.5 billion Euros a month from 6.4 billion euros a month from 2008-Sep 2011. Austerity is defined as spending less than what you are taking in. According to that definition, Italian austerity is severely increasing.
I hears somewhere that when someone is in a major financial crisis that person can either voluntarily make hard decisions now and cut their spending. Or take a bigger fall later when they are forced to cut their spending.
All over southern Europe, there is only an illusion of austerity going on. There isn't a lot of voluntary austerity. What happens when they are forced to go into austerity?
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Source: http://neilski.typepad.com/chicago_gold_and_silver_i/2012/11/what-european-austerity.html
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