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Austerity NEVER works. It's small minded and looks solely at the debt instead of the investment. IF we get debt for a billion dollar highway system but that h
by nickthemagicman 9y ago
Austerity NEVER works. It's small minded and looks solely at the debt instead of the investment.
IF we get debt for a billion dollar highway system but that highway system helps the country make billions of dollars over the time of the loan. That is called an incredible investment.
Greece, Kansas, Louisiana, etc have austerity governments and they are falling apart.
Investment pays off dividends...whereas austerity kills.
- Scea91 9y agoGreece is not falling apart because of austerity government but but because of the ones before that which were the opposite.
- nickthemagicman 9y agoOk..given that's the case. There are lots of governments who run high debt levels and aren't in that quandry. The debt isn't the problem. It's misuse of the debt that's the problem. Even most companys run standard levels of debt every quarter, because borrowing is a very powerful tool IF USED CORRECTLY. So, there's a significant distinction there, the I feel less educated and less economically inclined people fail to grasp.... Debt can be a very positive tool if used correctly.
- Scea91 9y agoI actually agree. The problem is that it feels to me that governments use debt incorrectly far more often than companies. I believe that it is because the current political systems reward short-sighted populistic debt more than long term investments which are often unpopular. As a consequence, austerity is often the only option for countries that obtained lots of debt irresponsibly.