Are government austerity policies 'good' or 'bad'?
It depends on the 'cuts'.
Forbes
However, governments are usually reluctant to sack civil servants.
"Despite numbers of staff employed by central government falling slightly over the last decade, costs have increased by 10 per cent.
National Audit Office, 2011...
According to John Milios on the subject of Austerity Policies:
1. When a government cuts social services, and wages are held down, the result can be a lowered demand for goods, less money collected in taxes and a downward spiral for the economy.
2. However, the rich elite may welcome austerity polices, because the result can be a reduction in the cost of the wages of employees, the bankruptcy of some small businesses, and a greater concentration of wealth in the hands of the big bosses of the big corporations.
1. When a government cuts social services, and wages are held down, the result can be a lowered demand for goods, less money collected in taxes and a downward spiral for the economy.
2. However, the rich elite may welcome austerity polices, because the result can be a reduction in the cost of the wages of employees, the bankruptcy of some small businesses, and a greater concentration of wealth in the hands of the big bosses of the big corporations.
Austere.
Joseph Stiglitz is the former chief economist at the World Bank.
Joseph Stiglitz has explained that: Europe and austerity have failed Greece
"Austerity had failed repeatedly, from its early use under US President Herbert Hoover, which turned the stock-market crash into the Great Depression, to the IMF 'programs' imposed on East Asia and Latin America in recent decades.
Joseph Stiglitz is the former chief economist at the World Bank.
Joseph Stiglitz has explained that: Europe and austerity have failed Greece
"Austerity had failed repeatedly, from its early use under US President Herbert Hoover, which turned the stock-market crash into the Great Depression, to the IMF 'programs' imposed on East Asia and Latin America in recent decades.
"And yet when Greece got into trouble, it was tried again..."
Germany was in a mess in the 1920's because of its large debts.
Germany was in a mess in the 1920's because of its large debts.
This led to the rise of Hitler.
Germany was in a mess in 1945, but the Allies gave massive aid to Germany and Germany recovered.
In the book, The Private Abuse of the Public Interest, the economists Lawrence Brown and Lawrence Jacobs, show in the US privatised public services have cost the tax payer 2 to 3 times more than they did when they were run by the government.
ReplyDeleteIn one district all the privatised schools went bankrupt without warning. The company even took out the security guards and then the empty schools got looted. It cost the district a fortune to put right. And private schools were a moot point, because it became very difficult for parents to tell if a school was any good or not, the figures were so massaged. This is also true for finance and insurance. Getting dodgy advice about how to invest your savings is rife.
When it comes to food, Hi-Fi's, ordinary consumer goods, TV's, cars, things like that, double glazing, etc., the public can easily tell if it is of value or not, but when it comes to public services that have been privatised, like health care, or education, it's hard for people to tell if they are not being ripped off, and many are. Their service, when it is needed, will often turn out to be a pile of rubbish, and with so many get out clauses they might have never been covered in the first place, despite many years of paying in.
And privatised services cost a fortune to keep a check on. If left unchecked, many private companies will just keep cutting back until there is hardly any service left. Wages go down, jobs get cut, and the local economy suffers because local people have less money to spend. But directors and shareholders rake off huge profits.
The only privatised industry that appeared to be a success was the airlines. But services were very poor, safety standards often jeopardised, people often lost their luggage, people got crammed into small spaces, and hidden costs often whacked the price right up anyway. And profits became so low, because of intense competition, that many companies begged the government to re-regulate the industry.
In the book, In Government We Trust, by the professors, Warwick Fennell, Robert Jupe, and Jane Andrew, they show how pretty much the same thing has occurred here in the UK. And in the news this morning was a report about how the private agencies that supply the NHS with nurses have been ripping off the UK government for years,
NZ went through the "privatisation phase" not so long ago.Infact it was a very well planned looting of NZers wealth,built up over a hundred years.
ReplyDeleteThe merchant Bankers Fay Richwhite looted over $500,000,000 dollars via this privatisation.Of course BOTH of them are Jews...Fay likes to masquerade as a catholic and infact went to a catholic secondary school...make no mistake he is a Marrano.
Around the time of looting things became a little hot for fay...he had already been implicated in hiding money in The Cook Islands...last time checked their finance minister was a Jew.....
So what Fay did was flee the country and went to live in Switzerland...with the stolen money.Things have cooled right off now,so he has returned.There is now absolutely NO chance of putting the jew cunt in jail.NZ now has a jew banker as prime minister!!.
To carry out this HUGE theft required that there was co operation with the major powerbrokers in parliament....jews
The previous prime minister to Key was the lesbian jewess Helen Clark...who now has a top job in the UN.Some predict she will be given the SG job at the UN....which will set the jew run Guardian absolutely crowing...the first woman etc.
So Clark was heavily implicated in this high level jewish corruption...as was a Roger Douglas....who appears not to be a jew...he is a closet sexual deviant...and therefore is easy to control.
Roger Douglas is hated NZ wide.
The Jews now treat NZ as there little fifedom and do as they please....there are numerous examples of these fiends ignoring the wishes if 80% of the population.Legalising prostitution or introducing casino's....The introduction of prostitution has led to young teenage girls walking the streets of Auckland...something impossible to imagine only thirty years ago.
Make no mistake the Jew is responsible for this and no amount of crowing about the fake holocau$t will change that.
Disgusting people
"It is rare, in the history of economic thought, for debates to get resolved this decisively. The austerian ideology that dominated elite discourse five years ago has collapsed, to the point where hardly anyone still believes it. Hardly anyone, that is, except the coalition that still rules Britain – and most of the British media."
ReplyDelete"I don’t know how many Britons realise the extent to which their economic debate has diverged from the rest of the western world – the extent to which the UK seems stuck on obsessions that have been mainly laughed out of the discourse elsewhere."
Paul Krugman
30.05.2015 US Special Forces are preparing sabotage in Ukraine
ReplyDeleteWe, CyberBerkut, continue to control the computer networks of Ministry of Information Policy of Ukraine.
Today we obtained information that the Head of the Department of Special Operations Coordination Center of the United States European Command will arrive to Kiev from Stuttgart within the next few days with the group of the US military psychological warfare experts.
The group together with the Ukrainian specialists entrusted with the tasks of the organizing and carrying out acts of information sabotage against the self-proclaimed republics of Donbass and the Russian-speaking population of Ukraine.
Ms. Tatyana Popova, Deputy Minister of Information Policy will be responsible for coordinating the activities of American commandos and Ukrainian propagandists.
http://cyber-berkut.org/en/
We are living in an age of superabundance as far as production is concerned, and robots are rapidly displacing human agents. Yet economists and politicians persist in requiring 'work' as a precondition of receiving the income needed to participate in consumption of the abundance. This puritanism is displaying as an entrenched mental illness. The Scottish engineer Major C.H. Douglas laid the problem and its solution bare nearly a century ago, but economic thinking among politicians is more atavistic today than it was then.
ReplyDeleteI read the called, The Grip of Death, A study of modern money, debt slavery, and destructive economics, by Michael Rowbotham, and wrote all about C.H. Douglas. If his ideas had won, our world would be so much happier now.
DeleteAnyway, I just checked him out on Wikipedia and he criticised the Jews who controlled the banking system, so they said he was anti-Semitic. That old chestnut, again.
But maybe the ultraorthodox Jews are anti Semitic too, because they are virulent anti Zionists. A lot of people don't know that.
Paul Craig Roberts is not anti Semitic and neither am I. Below is an extract from an article he wrote recently.
Delete"The Israel Lobby tries to prevent reports and criticism of Israel’s crimes against the Palestinians by branding every critic of every policy of the extreme right-wing Israeli government an “anti-semite.” In other words, if you object to Israeli armed forces shooting down Palestinian children in the streets and then bombing the funerals of the kids the Israelis have already murdered, you hate Jews and are an anti-Semite.
The success that the Israel Lobby has enjoyed in imposing this twisted logic on Congress, the White House, the media, the universities and the insouciant American public is astonishing. As a consequence, Americans are no longer answerable to Christian morality but to the evil that the Israel Lobby represents."
C. H. Douglas did an exhaustive study to the industrial system as it functions under the existing defective financial system. Douglas and Keynes were contemporaries. Some believe that Keynes plagiarized Douglas and inverted his ideas, thus delivering mankind into enslavement by exponentially expanding debt. More information is available from various sources, e.g., www.socred.com Wikipedia - Social Credit
DeleteDouglas advocated a distributive financial system as opposed to an administrative socialist state. His policy was essentially Christian and would incarnate Christian ideas in our organic affairs in the context of a free society--giving substance to the Christian concept of Salvation through Grace (a Gift from God) versus the implacably opposed Judaic concept of Salvation through Works. In Christian thought Salvation is a Gift; in Judaism it must be earned step-by-step. This is why history has revealed the strong Judaic influence in socialism in its various manifestations. It is primarily why, with rare exceptions, Douglas's distributive Social Credit ideas have been opposed by Judaic influences. www.socred.org Wikipedia - Social Credit, etc.
DeleteI thought Douglas would have been on the left. But if we can get the banking system corrected, and capitalism corrected, as Douglas advised, there would be no need for socialism.
DeleteThere would be far less exportation and people who don't like too much work will be able to get by on just doing 2 or 3 days a week. And if incentives were better, many of the so called work shy would be more eager to work. With ultra low pay, shit hours, while doing a really horrible job, no wonder so many can't bear it?
There would still be a place for some government run functions, like the NHS, social security, and pensions. Social security is a national insurance scheme where the government can run it very cheaply for us. Private insurance companies rake off too much profit, and you're not always fully covered ( like the latest PPI scandals). Also, what expertise do individuals often have, but governments can pay a few top experts to get the best deal for the whole country, and get massive discounts?
If Douglas's ideas had won, life would be a lot happier, and less stressful. But the mega rich rake off massive fortunes by getting us to go ten to a dozen all day long.
Former Scorpions Bass Player Admits to Attending Snuff Parties | http://ultimateclassicrock.com/scorpions-bass-player-snuff-parties/?trackback=tsmclip
ReplyDeleteASolo
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ReplyDeleteLet's do do a short primer on toxic mortgage scam that impoverished the world.
ReplyDeleteThe Federal Reserve (City of London)... Greenspan, Paulsen, Geithner, Summers, and Bernanke, many still employed under Obama, allowed "risk" to be removed from sub-standard loans by bundling these loans into CDOs (Collateralized Debt Obligations), mortgage back securities. These securities were then erroneously rated "AAA" by rating agencies like Fitch, S&P, and Moodys.
These "AAA" securities were then sold to unsuspecting pension funds, government agencies, and investors both in the US and Europe. These "AAA", "risk-free" CDOs, which offered higher margins and brokerage commissions (sales incentives), created an environment that guaranteed predatory lending practices. These CDOs were then "insured" using credit default swaps derivatives, left unregulated by the CFTC. Thus, allowing multiple speculators, even those who participated in their creations, to bet against these very risky "AAA" CDOs; ensuring that both the insurers, like AIG, and the investors would be destroyed once this massive ponzi scheme collapsed.
Larry Summers was especially instrumental in leaving derivatives unregulated due to his intimidation of Brooksley Born during her testimony about regulating derivatives while she was chairperson of the Commodity Futures Trading Commission. Thus, Summers' intimidation related to unregulated derivatives led directly to the crisis we are experiencing today.
Under duress from the bankers, their lobbyists, both in Europe and the US, congress had US tax payers pay for these losses with public bail-outs of the banks, corporations, even countries, which has now lead to the so-called austerity cuts to the social safety net, millions of lost jobs and homes, the destruction of the middle-class, and ultimately leading to starvation of the world (chaos and marital law).
At this moment there is TRILLIONS of dollars of derivative overhang on the world that is being secured by the US taxpayer through the unratified 16th Amendment through the Federal Reserve (City of London). Note: This analysis does not really include other types of bank fraud that has occurred with the LIBOR, or bank (HSBC) drug money laundering.
So, really the discussion should be about why the US and European governments didn't prosecute the bankers for fraud, as did Iceland; and why we haven't questioned the efficacy of a private banking cabal, centered in the City of London (Federal Reserve), that's using the war on terror to solidify its death grip upon the world (serial wars against nation-states, false flag terror, austerity).
Anonymous
ReplyDeleteRemove income tax and put the tax on property and land instead. The rich can't offshore land and it will end house price bubbles making homes more affordable again. It will also smash a big hole in the private landlord scam.
When I was 9 years old the local supermarket had a deal on some fruit pies which had a label on the back of packet for another free pie. So we bought a pie, went outside, took the label off, and went back inside and got a free pie. Over a period of about half hour we emptied the whole shop out, and our mums were half proud with us with all those free pies we brought home.
We checked the shop out for a week and then a new lot of pies came back in and we did the same thing all over again.
It's like that with rented houses. Get mortgage, buy a house, rent it out, then get someone in to pay the rent and pay off your mortgage for you, then go to the bank again and get another mortgage and do the same thing all over again, and so on. Easy peasy money, or money for nothing.
Vast fortunes have been made this way, but the tax incentives were all wrong as capital gains tax was far too low ( set low by the mega rich who control the mainstream parties) . Tax incentives should have been put on investing in industry instead which would have created more well paid jobs lowering the tax burden on the rest of us. But that doesn't benefit the financial class so much?
The typical credit card debt in the U.S. is: $15,956.
ReplyDelete