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How’s That Austerity Working Out?

Susie Madrak pointed to this Guardian article that notes:

The National Institute for Economic and Social Research (NIESR) said in its monthly health check that the economy shrank by 0.3% in the three months to December. Against a backdrop of weak consumer spending and a drop in manufacturing output, the estimates from NIESR may add fuel to campaigns for George Osborne to adopt a more radical approach to generating growth.

And then I found this BBC article that mentions:

Last month, Germany’s central bank, the Bundesbank, cut its growth forecast for this year to 0.4% and warned that the economy may have contracted in the final three months of 2012, and may do so again in first quarter of 2013.

The eurozone economy as a whole is already in recession, having contracted in both in the third and fourth quarters of last year.

This is a good thing to keep in mind while you watch the government of the United States play Calvinball with our economy. There is no doubt what the policies everyone seems to be advocating will do – push us back into recession, just like Europe.

Put people back to work repairing the infrastructure and they will have money to spend to increase demand for goods and services. When they are working they will pay taxes which reduces the deficit and strengthens Social Security.

3 comments

1 jamsodonnell { 01.18.13 at 9:15 am }

Ha we Brits are just jumping with joy. None of us has seen a triple dip recession before!

2 Kryten42 { 01.18.13 at 11:32 am }

All I can say is… No… Someone far more famous than I said it first, and better! ;)

“Reality must take precedence over public relations, for nature cannot be fooled.”
— Richard Feynman

I will add a corollary: “…But most people are easily fooled.”

3 Bryan { 01.18.13 at 11:34 pm }

The thing that bothers me, Jams, is that every time I think that politicians are going to finally understand that they are screwing up and on the wrong path, they do something even worse. Unfortunately for the people of the UK, I don’t see the Tories learning anything from the facts. The current US government is even worse, because it is obvious what happens when you impose austerity, and they are moving towards it.

Roger that, Kryten, and they refuse to admit they were fooled.