With both France and Greece deciding to jump out of the left-wing frying pan into the even-more-left-wing fire, European fiscal policy has become quite a controversial topic.
But I find this debate and discussion rather tedious and unrewarding, largely because it pits advocates of Keynesian spending (the so-called “growth” camp) against supporters of higher taxes (the “austerity” camp).
Since I’m a big fan of nations lowering taxes and reducing the burden of government spending, I would like to see the pro-tax hike and the pro-spending sides both lose (wasn’t that Kissinger’s attitude about the Iran-Iraq war?). Indeed, this is why I put together this matrix, to show that there is an alternative approach.
One of my many frustrations with this debate (Veronique de Rugy is similarly irritated) is that many observers make the absurd claim that Europe has implemented “spending cuts” and that this approach hasn’t…
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Utopia, you are standing in it! 
Oct 21, 2014 @ 13:01:06
Austerity is much more than spending cuts. It is fiscal policy . If people want to merely concentrate on spending cuts then they are fools
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Oct 21, 2014 @ 13:14:12
So the Left is against tax rises?
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Oct 22, 2014 @ 12:52:44
I don’t know about the left but I see no reason to impose austerity when it is only going to weaken the economy.
As Keynes said in 1936 austerity is great when the economy is greaat
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