Registered: Mar 2003
Location: On a spit of sand we call Earth
European Austerity
I think there's been enough discussion about the Boston bombings and gun control in my country, now let's talk about yours. What are your thoughts and opinions about this conservative championed economic austerity that has swept through the Euro Zone? Does anyone here believe that continuing deep cuts to lower the deficits actually works to fix the economy? Doesn't seem like it's doing much good in either Spain or Greece. And I heard Cyprus has its own problems as well, although I haven't heard much about them since the Boston bombings have happened.
More than six million Spaniards were out of work in the first quarter of this year, raising the jobless rate in the euro zone's fourth biggest economy to 27.2 percent, the highest since records began in the 1970s.
The huge sums poured into the global financial system by major central banks have eased bond market pressure on Spain, but the cuts Madrid has made in spending to regain investors' confidence have left it deep in recession.
Unemployment - 6.2 million in the first quarter - has been rising for seven quarters and the latest numbers will fuel a growing debate on whether to ease off on the budget austerity which has dominated Europe's response to the debt crisis.
"These figures are worse than expected and highlight the serious situation of the Spanish economy as well as the shocking decoupling between the real and the financial economy," strategist at Citi in Madrid Jose Luis Martinez said.
The collapse of a property boom driven by cheap credit has seen millions in the construction sector laid off since 2009 and private service sector, worth almost half gross domestic product, has followed as Spaniards tightened purse strings and investment plummeted.
The malaise has been made worse by billions of euros in state spending cuts and tax hikes to reduce one of the euro zone's highest deficits and convince nervous markets Spain can control its finances.
Apr-25-2013 22:50
pkcRAISTLIN
arbiter's chief minion
Registered: Jul 2002
Location:
See, the “austerity = fixed economy” wasn’t something I’d gathered from all the debates on the topic. I thought it was purely a “gotta get spiralling government spending under control”, particularly in the Eurozone where things really were ridiculous. I dunno how anyone could conclude that massive government cutbacks would achieve anything but poor economic outcomes, lol.
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Apr-25-2013 23:04
Joss Weatherby
Banned
Registered: May 2008
Location: The Pacific Northwest, of course
Austerity = Austrian Economics slipped under the door = Idiocy.
Apr-26-2013 00:01
pkcRAISTLIN
arbiter's chief minion
Registered: Jul 2002
Location:
quote:
Originally posted by Joss Weatherby
Austerity = Austrian Economics slipped under the door = Idiocy.
Nah I think that’s too simplistic.
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Apr-26-2013 00:18
Looney4Clooney
Supreme tranceaddict
Registered: Apr 2010
Location:
austerity especially when it is collective and used during a recession has never worked. It isn't supported by any competent economist.
Registered: May 2008
Location: The Pacific Northwest, of course
quote:
Originally posted by pkcRAISTLIN
Nah I think that’s too simplistic.
Well yea. It was an explanation involving two equal signs.
Apr-26-2013 01:48
Zharen
Put down the plate
Registered: Mar 2003
Location: On a spit of sand we call Earth
quote:
Originally posted by Looney4Clooney
austerity especially when it is collective and used during a recession has never worked. It isn't supported by any competent economist.
And yet all the leaders of the Euro Zone are steadfast to believe it will work. Well I guess America isn't the only country to have fucked up economic principles, hooray.
Apr-26-2013 03:24
Nrg2Nfinit
ItaloDiscoAddict
Registered: Sep 2001
Location: Ottawa
fuck austerity; i'm losing my shirt in gold LOL
keep printing money, that's the way to go.
Apr-26-2013 04:52
pkcRAISTLIN
arbiter's chief minion
Registered: Jul 2002
Location:
quote:
Originally posted by Nrg2Nfinit
i'm losing my shirt in gold LOL
pretty sure i've pointed out to everyone that gold is a lousy investment. tsk tsk.
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Apr-26-2013 05:14
looom
tranceaddict in training
Registered: Apr 2013
Location: Tartu
politics isn't my thing really, all this speech of peace and prosperity and whatever the hell else is today's propaganda. There haven't been any remarkable changes in the whole economic situation in EU, those who are fucked, are still fucked and those who are rich are still rich, just get richer, but statistically that's only a few % increase.
Apr-26-2013 05:52
Moongoose
Supreme tranceaddict
Registered: Apr 2003
Location: Celje, Slovenia
Reinhart and Rogoff have a lot to answer for. Of highly educated harward economists i would expect either properly learning how to work in excel or not cherry picking data points so that you get a desired, not a factual result.
Anyway, speaking of austerity, there have been talks here in recent days of blanket 30% cuts to all public sector workers and pensioners. Thats after a pay freeze some years ago to public sector workers and a 10 to 20% cut in public sector salaries and pensions already (dont know the exact number). Well that's just fucking brilliant isnt it. Dad is retired, mom works in medicine so the cuts will do just wonders for them.
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Apr-26-2013 08:58
Lagrangian
Suspended User
Registered: Feb 2012
Location: Mountain View, Santa Clara, California
It was an explanation involving two equal signs. 
