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View Diary: Austerity doesn't work: New IMF report details the damage (167 comments)

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  •  Austerity's "Impact on Social Harmony..." (9+ / 0-)

    There are more than financial consequences to austerity. This article discussed how austerity and social unrest have been linked before in Europe: cost-cutting program after the other in many European countries...could be accompanied by increasing social unrest. Austerity and anarchy are closely linked. We've been able to unambiguously establish that with a minor study looking at the period between 1919 and 2009...

    ...Jacopo Ponticelli and I...looked at the histories of 28 European countries over the last 90 years. It is a fact that savings amounting to just one percentage point of GDP are accompanied by social unrest. And when they reach two or three percentage points, it massively increases...

    ...What is the alternative to consolidating by cutting welfare spending?

    Voth: There is less unrest if the state looks around for additional sources of revenue. It is much easier and less risky to raise taxes rather than massively cut spending...

    Republicans, especially tea-party republicans, have proven time and again how ignorant they are.  They are apparently totally ignorant of all the potential consequences of forced austerity.  

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