Common Sense Lesson of the Day: Austerity Leads to Worse Debt
Not sure if you heard, but Austerity is the key to government survival – at least according to many morons in our government pushing the idea that we need to drastically cut government spending to save our way of life. They couldn’t be more wrong.
Yes, large debt is bad, but if the goal is trimming debt, why is it that every European country that enacted harsh government spending cuts has increased their debt dramatically? The chart above, with…what are those called again -FACTS! – shows how flawed the entire austerity-lowers-debt movement is.
When government spends less, there is less money in the market…less money in the market means people have less money to spend…less money spent means less money earned by people who make crap…less money spent/earned means government takes in less but has to spend more for the country to function. Austerity is killing Europe and starting to hurt us here at home, but many are still pushing for cuts that will cripple the American economy in a time when we need as much money in the system as possible.
Just know that if you hear a politician talking about drastically cutting spending, its for one of two reasons: 1) the more they cut, the more they can justify tax cuts to their wealthy donors and 2) the worse the economy gets, the worse off everyone becomes, the better their ability to push the “Change” card next election. Don’t let them fuck with our economy so their party can win elections.
Read: The Complete Failure Of Austerity, In 1 Chart.