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Now That Austerity Has Failed, Where Lies The Fiscal Treaty?

Mad as Fish

Well-known member
Joined
Dec 6, 2012
Messages
24,185
But it ain't working:

As the salt pillars of austerity crumble there will be enormous opportunities - Independent.ie

"Even Michael Noonan, a supporter up until yesterday, has had a volte face extraordinaire and is now saying that the Irish presidency has been working tirelessly to dismantle austerity behind the scenes. This is obviously why the Irish presidency oversaw the austerity-driven shambles in Cyprus two weeks ago!"
I was doing quite well with the link until I came across this -

Then something odd happens: retailers respond by cutting prices. But when people who are worried see prices falling, rather than conclude that there is a bargain to be picked up, they conclude that prices will fall further, so they actually spend less. We are witnessing this in the retail carnage in Ireland at the moment.

Not sure what retailers he had in mind but I can't think of many that have dropped their prices and people stopped buying because they didn't have the money or because they didn't know where the next euro was coming from or when the government would take it off them!
 


Fides

Well-known member
Joined
Apr 6, 2010
Messages
4,425
Haven't seen anyone actually spell out an alternative to the current path. What we are seeing are suggestions to extend the time it takes to get there. Less austerity but for longer.

The genuine alternative to austerity would be for governments to spend more, lower taxes and in the short term increase the deficit in the hope it kick starts everything again. Probably feel better for a while but it's high risk.

That's basically what the US is doing but it's hard to see how they can keep going pushing up the deficit.
 


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