Austerity Is Here To Stay, And We'd Better Get Used To It

[thecrashingisles]

http://www.guardian.co.uk/commentisfree/2012/nov/14/austerity-here-to-stay

As workers across the European Union went on protest strike today, it was hard to disagree with the trade union leader who told the BBC that austerity economics isn't working. "It's increasing inequalities. It's increasing the social instability in society. And it's not resolving the economic crisis," she said.

All of that is true and serious. Addressing those things is fundamental. But we are going to have to get used to austerity. Because relative scarcity, and the need to do more with less, are not going to go away in a hurry. Austerity is remaking our world. The point is to make the best of it. Welcome to 21st-century Europe.

Today's quarterly inflation review by the Bank of England is merely the latest in a series of indicators that remind governments and peoples across Europe and beyond that the old days are simply over, done, finished. Recovery would be sustained but slow, said the Bank. The economy was sluggish. The environment unfavourable. Things might be weaker for longer.

The message is hard to miss. Times have changed. The only thing that is certain is further uncertainty. We may have come out of recession again, but the idea that Britain, let alone the countries of the eurozone, can expect to see any resumption of the kind of growth rates to which we have all been accustomed since the second world war, is increasingly fanciful. We are living through not a downturn but an epochal change, and we need to make a more consistent effort to understand what this implies.

Guardian readers don't agree:

Recommended 431 times:

Austerity kills prosperity, and we'd better tell the neoliberals to stick it up their arses.

Edited November 15, 2012 by thecrashingisles

[Errol]

Austerity? In the UK? With no cuts and spending scheduled to rise year after year?

[Mrs Bear]

Austerity? In the UK? With no cuts and spending scheduled to rise year after year?

The other day I was going through some stuff belonging to an ancient dead aunt of Mr B's, and found a knitting pattern. price 3d, for men's socks in 'calf length and Austerity length.'

Anyone wanting a copy, just let me know.

Ideal Christmas present.

[Solitaire]

I was discussing this this morning. Though there will be some winners I think the norm will be a return to the days of the 50's through 70's in terms of standards of living. The difference will be that unlike those days people will be chained with personal debts that will keep them in servitude with no way out. It'll take at least a generation to reset peoples values, aspirations and I want it now mentality. I think this will be the reality - a return to a more normal way of living and not this manufactured bubble we've been living in for the past 30 years that has clearly been unsustainable.

[ntb]

Austerity is coming, but in no way can it be said to be actually here yet.

[Solitaire]

Austerity is coming, but in no way can it be said to be actually here yet.

+1

[mk1mini]

I was discussing this this morning. Though there will be some winners I think the norm will be a return to the days of the 50's through 70's in terms of standards of living. The difference will be that unlike those days people will be chained with personal debts that will keep them in servitude with no way out. It'll take at least a generation to reset peoples values, aspirations and I want it now mentality. I think this will be the reality - a return to a more normal way of living and not this manufactured bubble we've been living in for the past 30 years that has clearly been unsustainable.

I 100% agree with this, although another thing that we are coming to the end of which also needs to be considered is that we are in an energy consumption bubble. For the past 100-150 years we have had access to cheap energy, this will change and it will continue to drive inflation.

[WiseBear]

Austerity is coming, but in no way can it be said to be actually here yet.

Agreed. One way or another we will get austerity because there's no other option.

If you continuously spend more than your income someday this will jump up and bite you on the ****.

It's just a question of how austerity is applied and who the winners and losers are.

Whether it's cost cutting or higher taxes & deficit spending or inflation or deflation it doesn't matter someone has to repay the debt.

[winkie]

The other day I was going through some stuff belonging to an ancient dead aunt of Mr B's, and found a knitting pattern. price 3d, for men's socks in 'calf length and Austerity length.'

Anyone wanting a copy, just let me know.

Ideal Christmas present.

....no the wool would be too expensive....not cost effective.....poly nylon Chinese style does the trick at fraction of the price no effort involved.

[Mrs Bear]

....no the wool would be too expensive....not cost effective.....poly nylon Chinese style does the trick at fraction of the price no effort involved.

Tongue was firmly rammed into cheek, Winkie. Wasn't it obvious?

[Solitaire]

....no the wool would be too expensive....not cost effective.....poly nylon Chinese style does the trick at fraction of the price no effort involved.

but we're talking austerity here. What you do is go to a jumble sale, buy wool jumpers or recycle your own. Wash, unpick, make into skeins using the back of a chair (kids also come in handy; I remember it well) roll into a ball then knit. A regular occurence when I was growing up, but mum did knit some great jumpers that we got as a Christmas present. Gulp, hope we don't return to those days but I think there will be a lot of make do and mending going on in the future.

[Gone baby gone]

Austerity? In the UK? With no cuts and spending scheduled to rise year after year?

No cuts? They're been cutting jobs all right:

One quarter of the Department of Education was axed yesterday:

http://www.bbc.co.uk/news/education-20324346

6,000 nurses gone in "ring fenced" NHS:

http://www.guardian.co.uk/society/2012/nov/13/nurses-nhs-job-cuts-standards

Ok, so they're not cutting spending, you should ask them where the money went....

[Executive Sadman]

They know, labour know, Tories know, unless you actually allow the free market to act, to clear, and to force realization, a slow deflation of the bubble is the option that give the longest period to stop realization.

All else is rhetoric. Lib/lab/con will have basically identical deficits. Labour deficit might benefit union interests a bit more, but thats all.

[Executive Sadman]

No cuts? They're been cutting jobs all right:

One quarter of the Department of Education was axed yesterday:

http://www.bbc.co.uk/news/education-20324346

6,000 nurses gone in "ring fenced" NHS:

http://www.guardian.co.uk/society/2012/nov/13/nurses-nhs-job-cuts-standards

Ok, so they're not cutting spending, you should ask them where the money went....

Pensions. More and more of your taxes will be re-allocated from providing services to providing pensions for retired state employees.

[erat_forte]

I 100% agree with this, although another thing that we are coming to the end of which also needs to be considered is that we are in an energy consumption bubble. For the past 100-150 years we have had access to cheap energy, this will change and it will continue to drive inflation.

I thought Guardian readers and their ilk were in favour of less consumption, less energy usage, etc? Isn't this what they mean by environmental and sustainable living?

[browneconomy]

I thought Guardian readers and their ilk were in favour of less consumption, less energy usage, etc? Isn't this what they mean by environmental and sustainable living?

Yes, Guardian readers are "in favour of less consumption, less energy usage, etc? Isn't this what they mean by environmental and sustainable living"......... just providing that the policy is implemented in a George Orwell 'some are more equal than others' sort of way.

ie Guardianistas can have WFTC as well as holiday homes etc. And the rest of us can pay for their index linked, state backed pensions.

Edited November 15, 2012 by Leo Dumpmen

[campervanman]

I 100% agree with this, although another thing that we are coming to the end of which also needs to be considered is that we are in an energy consumption bubble. For the past 100-150 years we have had access to cheap energy, this will change and it will continue to drive inflation.

That assumes nothing new is found/discovered to replace the old form of energy. History is against you on that one.

[fluffy666]

I was discussing this this morning. Though there will be some winners I think the norm will be a return to the days of the 50's through 70's in terms of standards of living. The difference will be that unlike those days people will be chained with personal debts that will keep them in servitude with no way out. It'll take at least a generation to reset peoples values, aspirations and I want it now mentality. I think this will be the reality - a return to a more normal way of living and not this manufactured bubble we've been living in for the past 30 years that has clearly been unsustainable.

Why, when on average we are more productive than ever, should our collective standard of living go back a few decades?

(And this also seems to have the caveat 'Across the entire western world')

[Mrs Bear]

but we're talking austerity here. What you do is go to a jumble sale, buy wool jumpers or recycle your own. Wash, unpick, make into skeins using the back of a chair (kids also come in handy; I remember it well) roll into a ball then knit. A regular occurence when I was growing up, but mum did knit some great jumpers that we got as a Christmas present. Gulp, hope we don't return to those days but I think there will be a lot of make do and mending going on in the future.

Thing is (recycling old jumpers aside) it used to be cheaper to make a lot of things and now, because of dirt cheap imports, it isn't. My mother used to make our school summer dresses and so did a lot of others - some used to knit uniform pullovers as well. The school specified the pattern for summer dresses. Butterick as I recall.

Don't suppose any mum would dream of such a thing nowadays.

People would think she was off her head.

[tomwatkins]

That assumes nothing new is found/discovered to replace the old form of energy. History is against you on that one.

+1

[erat_forte]

Thing is (recycling old jumpers aside) it used to be cheaper to make a lot of things and now, because of dirt cheap imports, it isn't. My mother used to make our school summer dresses and so did a lot of others - some used to knit uniform pullovers as well. The school specified the pattern for summer dresses. Butterick as I recall.

Don't suppose any mum would dream of such a thing nowadays.

People would think she was off her head.

Well for one thing buying fabric by the yard is usually more expensive than buying finished garments!

[walker127]

Well for one thing buying fabric by the yard is usually more expensive than buying finished garments!

I stayed in Maastricht a couple of years ago in a fairly standard business type hotel for about 100 Euro's per night.

To wash a pair of socks by the hotel laundry service was 2.5 Euro per pair.

The local department store were selling 3 pairs of socks for 6 Euro.

.......It is cheaper to buy a new pair, wear them once then lob them in the bin

I cannot remember the numbers but it was about break even with 'T' shirts.

How can it be cheaper for China to buy the material, make it into socks, package them, ship them 6000 miles to the UK, than it is to wash them in a machine?

...something has gone wrong somewhere.

[Si1]

I thought Guardian readers and their ilk were in favour of less consumption, less energy usage, etc? Isn't this what they mean by environmental and sustainable living?

champagne lefties (which granted is not all lefties) are largely interested in masturbating over their own reflection - though shalt not consume, but i want a merc etc

[eric pebble]

Austerity? In the UK? With no cuts and spending scheduled to rise year after year?

Yup...

& how many of you keep asking the question: "Austerity? What austerity?".... -- CERTAINLY when you go to LaLaland - i.e. London & its environs.....

YES -- there are a large number of people/households who are not in good shape/"positive equity".... But I would venture to suggest that the reason for this is because the actual financial zone of "positive equity" is a mirage -- THANKS to the actions & consequences of the massive wholesale, worldwide, scale-never-before-seen EVER before in history FRAUD - perpetrated by the Banksters of Wall Street & The City of London..... [and some others too]......

Edited November 15, 2012 by eric pebble

[Si1]

The local department store were selling 3 pairs of socks for 6 Euro.

i doubt euro-technocrat politicians either buy cheap socksor check whether their expenses bill represents value - I'm thinking of Baron ess Ashton here (2nd most highly paid female politician in the world AFAIK and unelected), amongst others

Edited November 15, 2012 by Si1