Home > Miscellaneous Musings, Predictions > Real austerity is NOT a death spiral

Real austerity is NOT a death spiral

This quote from Professor Bland:

We know austerity is a death spiral. But the lesson from Japan seems to be (to me anyway) that boosting spending isn’t the panacea many think. Clearing the decks of the bad investments in housing and the debt tied to it is a start, but then, what do we need to funnel resources into? What has been underinvested in? Those sectors need to be our focus next.

The debt jubilee would be the start to setting this all in motion. But are we ready to reconcile yet as a nation? I don’t think so. The negativity in social mood makes me think we’re still a ways off.

If this comes off sounding pensive, so be it. I just don’t see a solution that is powerful, fast-acting and effective. There’s no Maalox or Tums for this debt heartburn, or doctor’s prescription. Not until we at least figure out how to clear the decks of the malinvested wreckage that came before.

Not only is this guy an idiot who keeps qualifying and hesitating until he says nothing at all.  And he’s wrong on what he does say.

“Austerity” simply means lazy public serpents have to get off their butts and get real jobs.  Admittedly that’s difficult for many of them.  Unemployment will definitely rise.   Some bankers will also be unemployed or become fraudulent used car dealers, promising cars for immediate delivery when they have none – or promise them to multiple buyers.  Old habits no doubt die hard.

Sad.

But the economy will be more stable and better off long term.

Yes, we need to clean up the financial sector.  Yes, this will cause pain.  There is no other way.  Resources need to be reallocated.  It will take time.  It will result in a recession/depression.  But people with savings and cash will benefit.  And those in debt will die.

There are homeless people everywhere, right now.  Good people.  Sad.

Let the public serpents and the bankers go homeless and the middle class survive.

If that’s austerity, bring it on.

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