Kasz216 said:
Additionally it's paying off well for Ireland. Really it's all a matter of what you mean by work.
Does Austerity fix the problems right away? No. However lack of austerity causes problems to last longer, because government spending can not create real growth, but only assisted growth, which doesn't properly represent the market, and therefore causes a longer reorginization, where when goverment money is pulled away, stuff that relied on such money failed.
So really it's a matter of, do you want Austeroty, and then bottom out quickly and recovery quickly.
Or do you want more spending, and have a very slow very weak recovery for a while, followed by another drop/stalling forever as everybody has to readjust to an economy that doesn't really work.
Me, i'd rather have a short amount of hardship with a quick recovery that puts us far ahead of where we would be as we try and gently pull on a bandage. |
So what Austerity measures did Australia take?
- They provided stimulus packages for low and middle class
- They spent in infrastructure, such as the NBN (the largest project undertaken at $42bn) and looking for a very fast rail project, speculated to cost close to $100bn
If you ask the people around here, they'll say that the federal government's spending is "out of control", yet they handled the financial crisis just fine.
How is Australia doing Austerity again?
EDIT: Australia's safeguard against the GFC was government regulation, not Austerity. This has been imposed since the Keating government of the 1990s:
http://en.wikipedia.org/wiki/Four_pillars_policy
