Reasons not to follow the rights austerity plan......

[whogo]

milton greed - Bing Videos

Answers the OP's question.

The whole show can be viewed here:

http://www.youtube.com/watch?v=DvNzi...layer_embedded

Notice the civility of Friedman, Donahue and the audience.

[Roadking2003]

Originally Posted by geeoro

T
In Europe they have chosen the Austerity route and this has caused the recovery in Europe to stall and cause huge problems with Greece and other Countries. The recovery in Europe is far far slower than in the USA.
The USA has used stimulus to recover from the recession and even though slow, is recovering 10 times faster than Europe. I... what do you think?

What I think is you are reading the Krugman talking points. Krugman has an agenda. He loves big government and his solution to every problem is more spending and more government.

So show us the facts.

Here is a fact: Government spending in the UK has continued to increase every year for the past 20 years... so no austerity measures were implemented there.

[Mircea]

Originally Posted by gysmo

the economy has been prop up by government spending, but how long you think this can go on?

Not just government spending, but also tax cuts. The party's over.

Propping up...

Mircea

Originally Posted by fibonacci

The Republicans ARE NOT fiscally conservative. Just look at how much debt Reagan, Bush Sr., and Bush Jr. got us into.

Um, per the US Constitution, the House of Representatives introduces tax and spending legislation: Democrats controlled the House from 1931 to 1995 -- a total of 50 years (Republicans controlled 2 years in the 1940s and 2 years in the 1950s).

Factually...

Mircea

Originally Posted by shorebaby

So what? You claimed the US could not default. You are, of course, wrong.

Originally Posted by knowledgeiskey

Really? How? Lol

He's right, of course the US could default. I'll let the US Treasury Department explain it in their own words:

Originally Posted by US Treasury Department

...by borrowing from the public or repaying less debt...

"...repaying less debt..." is legal jargon and a nice way of saying defaulting on debt (because that is what happens when your repay less debt).

Such a default would not be without consequences.

Economically...

Mircea

Originally Posted by geeoro

"Yawn" Pity the facts contradict you.

What facts?

Pitying...

Mircea

[evilnewbie]

Originally Posted by knowledgeiskey

Ummmm

Most mainstream economists believe austerity is the last thing to do during hard times.

Most economists thinks politics instead of economics... herein lies the problem..