Courtney Kidd, LMSW SJS Staff Writer
You don’t say.
George Osborne, the Chancellor of Exchequer in the United Kingdom admitted in a recent statement that austerity just doesn’t work. The statement was discussing how the government has failed to reduce the deficit within the four years as promised based on many cuts to governmental departments. Concerns over the countries AAA rating is now being speculated. Austerity has been the word world-wide in the past few years(That’s right, the word is ‘austerity,’ not ‘Grease’ or ‘Bird.’ I repeat, the Bird is not the word). One of the trouble economics faces is that there is no sure way of testing theories other than real life situations. The citizens of the United Kingdom have been suffering in one of the largest socio-economic experiments that has led to depressing results.
This is demonstrating further proof that cuts must be made, but slowly, and coupled only with economic growth. The British are preparing for the backlash, which they estimate will be an increase in unemployment and a mere 1.3% growth(GDP). One of the things that can be taken away from the countless examples of failed policy is the need for review and redirection if needed. The way the parties have worked together, in any country, has led to a no holds bar approach of “I’m sticking to my guns(or nightsticks in the UK), damn reason or results.” Back in 2009, Osborne could have changed the policy as he saw his plan floundering and Britain headed for even worse trouble, but refused. This is the plan that Romney/Ryan had planned on setting into motion if elected, while the current progress has demonstrated that the U.S has been growing twice as fast in the recession are our deficit will be 2% less than Britain’s by next year. No policy is perfect, the recession is still apparent in both countries, but comparatively, the U.S. is looking a little healthier for upcoming years.
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Austerity doesn’t work– when overspending so bankrupts a government that the entiire economy sinks. Prevention is always much, much more effective than any attempt at a cure.
The fact that economies now NEED to spend in order to be solvent should have been our first clue about that one. You can’t make money unless you spend it, isn’t that how the new saying goes?