Austerity, European Style

Following up on my previous post, What Austerity?, I thought I’d share this great chart:

Perhaps we shouldn’t give up on austerity until after we’ve actually tried it.

Source: Cafe Hayek

 

Author Disclosure: None

Talk to Frank about Austerity

What Austerity?

Zerohedge has a post that gives some much needed context to the current debate over austerity and its “failure.”

What Austerity?

By mainstream media accounts, the presidential election in France and parliamentary elections in Greece on May 6 were overwhelming verdicts against “austerity” measures being implemented in Europe.

There is only one problem. It is a lie.

First off, austerity was never really tried. Not really.

In France for example, according to Eurostat, annual expenditures have . . .

→ Read More: What Austerity?

Tchir: When did Austerity Become a 4 Letter Word?

Peter Tchir of TF Market Advisors wrote this commentary clarifying some of the heated discussion over austerity and GDP growth:

Sud­denly, every­where you look, “aus­ter­ity” has become a 4 let­ter word. Clearly it wasn’t exces­sive spend­ing that caused too much debt. Surely we didn’t hit a finan­cial cri­sis in spite of exces­sive spend­ing, nope, it is all the fault of austerity.

In the rush to avoid sup­port­ing any­thing that could be viewed as “aus­ter­ity” we have lost sight of . . .

→ Read More: Tchir: When did Austerity Become a 4 Letter Word?