>>>>>The proponents of spending cuts assure us it will trigger growth as the private sector steps up.
>>>>>
>>>>>Ireland has imposed draconian cuts.
>>>>>
>>>>>Has it worked
>>>>>
>>>>>No
>>>>>
>>>>>
http://www.bbc.co.uk/news/business-11397875>>>>
>>>>Did I miss something? The article seems to be mostly about fears surrounding "Subordinated" debt and lenders not having the government's backing as was previously promised. The spread between it and Germany seems to have to do with those fears and the German government stating it would would cut its supply of new bonds for the rest of the year by a quarter which then led to a rally in German government bonds.
>>>>
>>>>What cuts by Ireland and where? No mention of that here in this article that I read...
>>>
>>>1st paragraph
>>>
>>>The Irish Republic's economy shrank in the second quarter from the previous three months, surprising analysts who had been expecting growth.
>>>
>>>Ireland made huge cuts in public expenditure. The sort of cuts that monetarists assure us are necessary for the private sector to operate. The private sectors answer seems to be a big fat farting noise.
>>>
>>>We're about to go off down this road in the UK with our new government falling over themselves to see who can make the biggest cuts.
>>>
>>>
http://online.wsj.com/article/SB126037743802583835.html>>
>>Economists generally agree that is exactly the wrong thing to do in a recession. The government should be spending more money, not less.
>
>Tell that to the tories.
Understood. We have our version of the tories. Their idea is to extend the Bush tax cuts for the rich, which are due to expire. We still have unemployment around 10% (much higher in some areas), with hundreds of thousands of people having lost their houses. The rich are not losing their incomes or their houses. Most of them don't even spend that much money -- that's one of the reasons they are rich -- so I don't buy the argument that if we give them more money it will trickle down to the less fortunate. Give the money directly to those who need it, I say.
