Whats up in Europe ? Is "Austerity" good or bad ?

[J_White]

Can anyone explain what is going on in Europe ? and whether Austerity is good or bad ?
If austerity means deficit and debt reduction, then it should be good, but then why do people oppose it ?
Are they brainwashed ?
IF so, how do they want to solve this crisis - by spending more money ? taking on more debt ?
The current leader in France's Presidential election, the socialist Hollande, does not want austerity. he wants to focus on "growth" ?
Netherlands govt just resigned because they cant have austerity.

http://www.bbc.co.uk/news/world-europe-17889665

[Demigod]

Can anyone explain what is going on in Europe ? and whether Austerity is good or bad ?
If austerity means deficit and debt reduction, then it should be good, but then why do people oppose it ?
Are they brainwashed ?
IF so, how do they want to solve this crisis - by spending more money ? taking on more debt ?
The current leader in France's Presidential election, the socialist Hollande, does not want austerity. he wants to focus on "growth" ?
Netherlands govt just resigned because they cant have austerity.

http://www.bbc.co.uk/news/world-europe-17889665

In Europe who wins an election is decided by who offers the most free things ( governments employees are the best voters ).That is how social peace such as peace with the minorities and immigrants is kept.Europe has too many social issues which have been covered up for the past few decades by trowing money at them.Now that there is less and less money the central governments can not function and are falling apart.

That socialist Hollande may want "growth" and may achieve it for the 4 or 8 years while he is in power but after that France will sink as a stone.

[WesSeid]

If austerity means deficit and debt reduction, then it should be good, but then why do people oppose it ?
Are they brainwashed ?

People like getting free stuff that is paid for by literally stealing the money from their own children. Thieves. May their children curse their names.

“If there must be trouble, let it be in my day, that my child may have peace.” -- Thomas Paine

[idiom]

Put it this way... currently the US Government is borrowing about 12% of the GDP per year. If you balanced the Budget today the economy would collapse by 12% immediately... or $1.3 Trillion dollars or so. 1 in 10 jobs would evaporate or so.

Those are tomorrows jobs though. If we have them today we won't have them in ten years or so. It has to be fixed today.

Not only that, but those jobs and resources are being used badly.

Austerity is very good and very important, unless you are in the 10% getting the axe.

[JBSay]

In France and I am sure in most European countries the majority does not pay any income taxes. So the majority which enjoys the benefits of welfare state without having to pay for them are set to loose the most from austerity measures. Of course it is better in the long run for the economy as a whole but voters don't really see that far out. Adults are not that different from kids really.

[JebSanderson]

In Europe who wins an election is decided by who offers the most free things ( governments employees are the best voters ).That is how social peace such as peace with the minorities and immigrants is kept.Europe has too many social issues which have been covered up for the past few decades by trowing money at them.Now that there is less and less money the central governments can not function and are falling apart.

That socialist Hollande may want "growth" and may achieve it for the 4 or 8 years while he is in power but after that France will sink as a stone.

How is that any different from here?

[federico84]

In Europe who wins an election is decided by who offers the most free things ( governments employees are the best voters ).

^^THIS^^

It's not easy to explain what's going on, who is right and who is not. A student of economics should know the matter better than me, but current leading members of Italian government studied economics, got their MBA in the States, some of them were teaching economics at the university and still doesn't seem to me they're doing a good job. So I feel I can tell something.

First of all, I think austerity is very different from fiscal rigour.
Fiscal rigour means fiscal responsibility, spending cuts, budget balancing. I guess there's a man in USA talking about this, you should have heard of him, what's his name... mmm... could be Ron something?
European austerity means indefinitely tax raising, asking people for sacrifices, blood and tears policy (it's 15 years I keep hearing about "blood-and-tears", very popular expression, maybe sounds good, the more blood-and-tears you suffer, the more you feel like a martyr!). That would be acceptable, but just in the short time and along with spending cuts only.
I live in the north-eastern part of Italy and I haven't seen any significative, immediately effective cut in the last six months: if central government and politicians aren't doing any sacrifice, why should I? It must be very difficult for an american to believe me, but this is pure truth. Actual taxation as a percentage of GDP is estimated more than 60%, it's like you work for government from January til August, then you have four months to gain enough to provide for you and your family. In such a situation, how can you be asked for sacrifice????

This austerity is going to kill economy: the more government asks, the less people spend, the less is the production, the less is the gain, the more business crash, the less income from tax, the more debts raise, again the more government asks... and so on and on and on.

Like "austerity", "growth" is another very popular word, everybody talks about it, everybody wants it, nobody knows how to get it. As a matter of fact, politicians are just waiting for growth. Falling from the sky probably. Meanwhile, here you are a cup of austerity. Please survive!

[Demigod]

In France and I am sure in most European countries the majority does not pay any income taxes. So the majority which enjoys the benefits of welfare state without having to pay for them are set to loose the most from austerity measures. Of course it is better in the long run for the economy as a whole but voters don't really see that far out. Adults are not that different from kids really.

I don't know were you get that no income tax.I pay a 10% income tax ( we have a flat tax ) + 18% VAT on all products + somewhere around 40% on fuel.

[Occam's Banana]

The use of the word "austerity" to denote sane fiscal policy is Orwellian.

Only politicians (& other parasites) consider living within one's means to be "austere."

[InTradePro]

"Austerity" is preventing of the deficit growing which amounts to balancing the budget.

It can be done in either a good or bad way.
A government could increase taxes or reduce spending, or both.

The Paul plan to cut a trillion $ in government spending would be Austerity. It will amount to some loss of jobs and income for a time, but would lead to growth.