An economist discusses ‘all this bulls*** of 20 years of austerity’… May 31, 2012Posted by WorldbyStorm in Uncategorized.
There’s a small anecdote from the SBP on a pro-Treaty meeting addressed by Lucinda Creighton and others.
Economist Colm McCarthy dismissed the arguments of the No campaigners. There was a loud laugh from the audience as McCarthy recalled driving down the country last week and noticing that some “geezer” had a poster up saying “Vote No to Water Charges”.
“All this bulls*** of 20 years of austerity is not true,” the economist explained, “austerity means you are cutting the budget deficit. Once it is cut enough, you don’t need to cut anymore.”
That sounds logical on the face of it. But it’s not entirely accurate. McCarthy must be aware that ideological and political approaches exist, indeed he’s championed them on occasion, which seek a significantly smaller state. And he must also know that the dynamic of a decade of cuts, which is near enough what we’re looking at at best, will have its own momentum. And he must also know too that commentators who eschew the baroque and hyperbolic, such as Michael Taft, have strong analyses which suggest that extended periods of ‘austerity’ are indeed in the offing due to the overall economic context.
Once is never enough.