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#114854 - 03/12/13 04:30 PM Catastrophic consequences of austerity in UK  
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UK is in triple-dip recession.

Quote:
The U.K. Office for National Statistics said industrial production saw a 1.2% monthly fall in January, while manufacturing output declined 1.5%. Economists surveyed by Dow Jones Newswires had forecast both measures to rise by 0.1%.


That could have been US if Tea Party had its way. For now, they are contained to only couple states, like Florida.


#114858 - 03/12/13 04:58 PM Re: Catastrophic consequences of austerity in UK [Re: Sini]  
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I think you are confounded, so to speak.


For who could be free when every other man's humour might domineer over him? - John Locke (2nd Treatise, sect 57)
#114873 - 03/12/13 11:45 PM Re: Catastrophic consequences of austerity in UK [Re: Sini]  
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France
Austerity. I think you don't know what this word means.



#114880 - 03/13/13 01:29 PM Re: Catastrophic consequences of austerity in UK [Re: Arkh]  
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Really Arkh?

I am rolling my eyes at you.


#114881 - 03/13/13 01:30 PM Re: Catastrophic consequences of austerity in UK [Re: Derid]  
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Originally Posted By: Derid

I think you are confounded, so to speak.


So another dodge. I see.

Well the facts are, all countries that went with austerity instead of stimulus are now significantly worse off. Ireland, UK. You simply can't cut your way out of recession.

This is very empirical evidence. You can proceed to engage in epistemic closure or you perhaps could examine the facts and adjust your position/methods.


#114888 - 03/13/13 02:33 PM Re: Catastrophic consequences of austerity in UK [Re: Sini]  
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No, just pointing out that your attempted ties here are shallow.

This evidence is about 0.001% of the available evidence.Plus you need to consider how the mess was arrived at in the first place, and that arrival was certainly not ushered in by "austerity".

You can create a bubble of any sort, then if you stop feeding bubble there is obviously going to be some temporary contraction as the bubble deflates. That does not mean you are on the wrong course. It is also preferable to maintaining the bubble growth until it pops and you get real catastrophic contraction.

Last edited by Derid; 03/13/13 02:39 PM.

For who could be free when every other man's humour might domineer over him? - John Locke (2nd Treatise, sect 57)
#114892 - 03/13/13 03:07 PM Re: Catastrophic consequences of austerity in UK [Re: Sini]  
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More dodging.

You can look at Canada as another data point, where they also used deficit spending to avoid worst of the recession.

Sure, excessive deficit spending can cause a number of well-known problems. I am not denying potential for these exists.

What right got wrong is that they looked at these potential problems and decided to go with exactly opposite approach, that approach simply does not work. Theory is nice and all, but it has no empirical backing.

Cite one example in recent history where a country managed to cut spending its way out of a recession.


#114900 - 03/13/13 04:22 PM Re: Catastrophic consequences of austerity in UK [Re: Sini]  
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Not dodging, and rather you should name a modern recession that was not caused by a bubble.

And I would look to the Recession of 1920-21 and quick recovery thereafter for your example.


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#114904 - 03/13/13 04:38 PM Re: Catastrophic consequences of austerity in UK [Re: Derid]  
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Originally Posted By: Derid
And I would look to the Recession of 1920-21 and quick recovery thereafter for your example.


Quick? QUICK?! That was monetary crisis where pre-FIAT monetary system with lack of liquidity couldn't cope with labor explosion due to returning troops. At no point it was a recession with lost growth, lost jobs and so on.

facepalm

It went into Roaring 20s, then in turn caused Great Depression. That wasn't quick. Austerity dragged it on and on, probably would have lasted into 50s if not for WW2 and New Deal.


Last edited by sini; 03/13/13 04:47 PM.

#114906 - 03/13/13 04:40 PM Re: Catastrophic consequences of austerity in UK [Re: Sini]  
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Comparatively speaking yes. WW1 period distortions we largely expelled, and economy did well afterwards. Then The Govt got stupid again, and we all know what happened in the 30's


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