4. (2013 May) Opinion: Austerity Is a War on Prosperity

Austerity Is a War on Prosperity
By Fred E. Foldvary (Progress Report)

“Austerity” is a policy of reducing beneficial government spending and raising harmful taxes. The taxes that have been increased in the name of austerity have been on goods, wages, value added, and the profits of entrepreneurs. The spending cuts are often on the infrastructure that make the economy more productive, or on the services that the poor depend on: education, medical services, housing, and food aid.


1 thought on “4. (2013 May) Opinion: Austerity Is a War on Prosperity

  1. Austerity does not work. Depressions are caused by a decline in the money supply, and austerity measures are designed to do just that. Keynsian measures work because they increase the money supply. Any measure which increases taxes on the poor or decreases taxes on the rich is bad for the economy because they reduce money in circulation. The poor will spend the money; the rich will hoard it. Austerity measures will only increase the disparity between the rich and the poor, and push the economy further down the path to destruction.

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