| the2real4mafol said: I never understood why governments around the world continue to think cutting services and any industries would help a economy to recover. All austerity does is destroy any chance of creating better services and more jobs and more importantly do what austerity hoped to achieve in the first, which is lower the debt. For an economy to work, you have to invest as it creates new jobs and thus for the money invested, more is collected in tax revenues, which lowers the debt. Simply put, it can be said, "you must spend money to make money" If anyone here agrees to austerity, please tell me why, i would like to know. |
Austerity only means that the govenrment is no longer the one choosing where the money goes. it will still be spent, but by those who earned it, and know better how to invest it. There are very few government programs that are done more effeintly or less costly than private companies. That is the problem with government spending, they just aren't good at it. the possible reason being they do not carry the risk of failure as its not their money they spend.
