"For what is Evil but Good-tortured by its own hunger and thirst?"
- Khalil Gibran
What most of the EU is doing isnt really austerity.One should also note that austerity during a recession is very much antithetical to Keynesian economics.
Austerity In Europe: It Will Work If It's Ever Tried - Forbes
Einstein, "science without religion is lame, religion without science is blind."
Its not and has never been a policy to increase economic growth.
Austerity was put into place to save the Euro and to save countless European banks that were leveraged up with worthless bonds from Union countries that violated the Maastricht Treaty.
Keynesian economics is not that difficult to comprehend.
Keynesian solutions don't work, and will never work because you can't address demand issues in a private sector, free market economy with Central planned allocations of stimulus that by-pass the free market principles that grow economies.
Arbitrarily dumping borrowed or printed currency into a economy doesn't address the fundamental issues that are leading to a lack of demand.
It creates debt and leads to misallocation of capital as it crowds out real wealth and innovation.
Obama's " Green Job's " iniative is a fantastic example of Keynesian misallocation.
Japan is also a great example. In the 90s rhey decided to implement Keynesian "solutions" as they borrowed massive amounts of money ( 200 percent of their GDP ) and dumped it back into their economy by " investing " in infrastructure.
They did exactly what every Lib on this board is calling for and it didnt work.
Now they're going for broke ( it will break them ) and entering into massive Monetary stimulus to try and fix what debt levels that exceed 200 percent of their GDP couldn't
Liberals and Progressives have no concept of humility.
They will never admit it was their policies that caused so much suffering and pain. I mean 6 years in and they're STILL blaming Bush.