Tuesday, December 20, 2011

Ireland's Suicide-by-Austerity Continues

This isn't fun to report:
Ireland’s economy contracted faster in the third quarter than at any time over the past two years, calling into question its ability to recover while implementing harsh austerity measures.
Gross domestic product fell by 1.9 per cent from July to September compared with the previous quarter due mainly to falling personal consumption and a steep decline in investment as the eurozone crisis deepened.

Austerity is an auspicious sounding term for paying down government debt by cutting spending and/or raising tax rates.  Considering that Ireland has been doing nothing but austerity plan after austerity plan for the last 3 years,  some neoliberal economists would eventually take a look at the results and realize that they aren't working(even I'm able to do that).

The only way Ireland and other European Zone countries are going to recover is by increasing demand until people are put back to work and people and businesses are more confident about making future investments.
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