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View Diary: The U.S. has learned nothing from Europe's deadly obsession with austerity (105 comments)

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  •  Austerity? For who? (0+ / 0-)

    Really what is American "Austerity"? Have we cut substantially any spending? No.

    And anything we do is totally  different from the 20+ countries of the Euro-Zone. An apples and wheelbarrows comparison.

    •  Government spending on the federal level (5+ / 0-)

      has grown at the slowest rate in some 60 years.

      State and local government spending is the lowest its been in decades. That's where the real austerity is taking place. From two Yale economists writing in The New York Times:

      It has become commonplace to contrast the American and European responses to the Great Recession, with stimulus in the former and austerity in the latter. European austerity has been at the level of member states and local governments — there is no meaningful federal government of Europe to provide either stimulus or austerity. But the United States has also seen unprecedented austerity at the level of state and local governments, and this austerity has slowed the job recovery.
      •  "slowest rate" (0+ / 0-)

        But it is still growing, no? C'mon.

        •  The deficit is shrinking, though (2+ / 0-)
          Recommended by:
          Georgia Logothetis, RenMin

          and overall government spending (most things in this country are the province of state and local governments) is shrinking and contributing to the persistence of high unemployment.

          "All governments lie, but disaster lies in wait for countries whose officials smoke the same hashish they give out." --I.F. Stone

          by Alice in Florida on Sun Apr 07, 2013 at 08:24:39 PM PDT

          [ Parent ]

          •  and this after a period of extremely (0+ / 0-)

            high rates of growth, so that really doesn't fly either.

          •  Not really (0+ / 0-)

            total Us government spending in 2001 was 33 % of GDP. In 2009 it was 42%. It is now at 39%. The rate is slowing but only in comparison to the huge uptick in 2008-2010.

            State spending as a % of GDP is currently 19%. In 2009 it was 21.4 %. In 2001 it was 18.3%.

            I really do not see any austerity in these numbers.


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