Despite its frequent use through the media and in
political debate, few journalists and politicians actually use the term
“austerity” correctly. But Cypriot Finance Minister Harris Georgiades does. In an interview
with The Wall Street Journal this month, he refused to label Cyprus’s
budget adjustments to date as “austerity.”
“I won’t call what we’re doing austerity, it’s fiscal consolidation,”
he said. “Austerity is to spend less than what you have and we’re still
spending more.
To most people, this is simple common sense. But to
spendthrift politicians and drama-hungry journalists, this does not compute.
Any cut, regardless if it results in a decrease of total spending or not,
constitutes “austerity” to then be demonized. The sequester, whose
tiny economic effect belied its massive political doom saying, is a prime
example of this here in the U.S…. Georgiades is right on the money, as I point
out in my new study, The True Story of
European Austerity: Cutting Taxes and Spending Leads to Renewed Growth.
Not only has Cyprus not implemented austerity, but neither have most other
European countries. And only four have actually decreased spending and
taxation below pre-austerity levels: Bulgaria, Ireland, Latvia, and Lithuania.….ToRead More……
No comments:
Post a Comment