Power of Story
Send a Tweet        
- Advertisement -

Share on Google Plus Share on Twitter Share on Facebook Share on LinkedIn Share on PInterest Share on Fark! Share on Reddit Share on StumbleUpon Tell A Friend

Printer Friendly Page Save As Favorite View Favorites (# of views)   No comments

Paul Krugman: Austerity's Grim Legacy

Quicklink submitted By   Follow Me on Twitter     Message Sheila Samples     Permalink
Related Topic(s): ; ; , Add Tags

View Ratings | Rate It

opednews.com

Become a Fan
  (45 fans)
From flickr.com/photos/27865228@N06/4984650777/: Paul Krugman
Paul Krugman
(Image by david_shankbone)
  Permission   Details   DMCA

There’s growing evidence that critics actually underestimated just how destructive the turn to austerity would be. Specifically, it now looks as if austerity policies didn’t just impose short-term losses of jobs and output, but they also crippled long-run growth. The turn to austerity had truly catastrophic effects, going far beyond the jobs and income lost in the first few years. In fact, the long-run damage is easily big enough to make austerity a self-defeating policy even in purely fiscal terms: Governments that slashed spending in the face of depression hurt their economies, and hence their future tax receipts, so much that even their debt will end up higher than it would have been without the cuts.

Read the rest of the story HERE:

At www.nytimes.com

- Advertisement -
- Advertisement -