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Greece has done a insane amount of spending cuts, if they are not doing austerity then nobody is and almost nobody ever has. > Otherwise, you would call every
by nickik 10y ago
Greece has done a insane amount of spending cuts, if they are not doing austerity then nobody is and almost nobody ever has.
> Otherwise, you would call every spending cut and or reductions in future growth Austerity. If your living above your means your living the high life not practicing asceticism.
Its totally false to say that Austerity is reduction in future growth. Normally decrease in the size of government leads to better growth.
You cant take the moral definition of Austerity, in economic Austerity means spending cuts and maybe some other measures to decrease debt.
- Retric 10y agoIf your going to make debt reduction your benchmark, they never cut far enough to reach that point. Even ignoring interest payments their debt was always growing faster than principle + interest. The government was spending up to 15.2% of GDP based on borrowing money. That's never going to be sustainable and a default would have also forced them to make deeper cuts. http://www.tradingeconomics.com/greece/government-budget http://www.tradingeconomics.com/greece/government-budget Also, several other countries have made deeper cuts. It's failure to collect and raise taxes that's been Greece's issue.