Friday, October 1, 2010
Video on Austerity Policy Launches New Media Initiative
An nice clean explanation about why he thinks austerity is bad. He has a few good points though as with the neo Keynesians, he forgot some pieces. (a) He says gov should spent when private sector is deleveraging, but the problem was of course the government WAS leveraging when everyone else was also leveraging and now is in a fiscal tight corner. (b) He talks about social equity and those who benefit from the debt boom won't be paying while those who did not (the poor) will be paying (not sure whether luxury holidays paid by MEWing count as benefiting) but we certainly have the problem where those who caused the crisis are not paying the price. Bankers are still parting with the cheap money and now savers are paying through inflation.