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Greece is the shining example of the type of economy the Democrats want in the United States. A public sector that consumes 55% of GDP. The highest defense expenditures as a percentage of GDP.
It's not socialism, it's statism, and it's dangerous.
The opposite of austerity would be to increase spending, which is NOT what they did.
The ratio is not a measure of weather or not they tried austerity. They tried it, but it did not work.
No Greece did not try austerity. You don't know what austerity is. Spending less than you take in. That's it, that is the definition of austerity. Nothing more and nothing less.
You can increase spending as long as revenues increase more in order to be austere.
Quote:
Originally Posted by Finn_Jarber
It does not always work. If you are going to cut spending, it has to be done when the timing is right. US could do it now, and it would work, but if you cut it when things are already falling apart, then it can do more damage than good.
When the revenues grow, the temptation is to increase spending, which is what Greece did, but when revenues fall, you will find it hard to pay for the increased spending.
US does not have a revenue problem today, so it would be a good time to reduce spending.
Incorrect. It has nothing to do with spending. It has everything to do with the relationship between spending and revenue.
Quote:
Originally Posted by Finn_Jarber
Unfortunately US did the same thing as Greece when we did not have a revenue problem. See chart going back to 2000, which shows steady increase in spending every year. That shows fiscal irresponsibility.
Incorrect. The US hasn't practiced austerity in ages. In 2000 we spent more than we took in. That isn't austere.
You've completely misunderstood what austerity is, that's why you've got it wrong.
No Greece did not try austerity. You don't know what austerity is. Spending less than you take in. That's it, that is the definition of austerity. Nothing more and nothing less.
You can increase spending as long as revenues increase more in order to be austere.
Apparently you are unaware that Greece has a budget surplus currently?
Austerity:
A state of reduced spending and increased frugality in the financial sector. Austerity measures generally refer to the measures taken by governments to reduce expenditures in an attempt to shrink their growing budget deficits.
The top wealthy that benefited from the loans that the average citizen never saw ran out of other peoples money.
The wealthy escaped Greece while the getting was good and now the average citizen is being asked to pay for it.
Of course Greece has a budget surplus... they don't pay their bills!
You mean like the 3 billion that they owe to germany for submarines that it was alter discovered the german company had bribed their government officials to purchase?
Apparently you are unaware that Greece has a budget surplus currently?
Apparently you are unaware you cannot have a surplus when the debt increases? That's the same thing the left tried to pull when they said Clinton had a surplus. He didn't.
Quote:
Originally Posted by greywar
Austerity:
A state of reduced spending and increased frugality in the financial sector. Austerity measures generally refer to the measures taken by governments to reduce expenditures in an attempt to shrink their growing budget deficits.
You forgot to include the revenue part.
Look at Latvia for real austerity. Cutting government budgets, salaries, employee benefits, retirement benefits, and taxes. Selling government assets and even repudiating government debt.
Last edited by Loveshiscountry; 07-01-2015 at 03:08 PM..
Notice with Greece the first democracy and by whites or Caucasians is really being put the screws to by the elites. But with say Africa, elites give billions in aide for nothing in return.
Apparently you don't understand you cannot have a surplus when the debt increases. That's the same thing the left tried to pull when they said Clinton had a surplus. He didn't.
OK so the IMF has stated that the effects from austerity are far higher then expected. Basically....the damage done from it means that they've damaged Greeces ability to make the payments in the long term. Whereas less austerity would have meant continued growth. How do most countries get out of debt like this? They grow out of them. In this case severe austerity was chosen, and the ability of greece to pay the debts has decreased.
Its like selling your car, and cancelling your insurance to help pay your mortgage, instead of investing in more education, and working hard.
Quote:
You forgot to include the revenue part.
No I did not forget to. The definition is from investopedia. Complain to them.
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