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- Posted: Sat, 28 Apr 2012 05:34:03 +0000
I know Austerity is harmful, is sure as hell isn't a good thing. The only reason to use it is when the government physically runs out of money...
Say whaaaaaat? rolleyes
Ok, bit over the top.
Specifically in Greece's case they have been running structural deficits by providing significant public services with lower tax rates (partly because the region isn't super rich). They cannot borrow that money indefinitely unless they can prove they can pay that interest indefinitely (which they no longer can).
So either they cut spending to meet tax levels or they tap out their borrowing and have to prioritise where they send their limited tax dollars. Either way the Greek budget enters a form of Austerity.
There is so much government, private sector, consumer, student loans, and even credit cards made in the name of pets that the entire Etch-a-Sketch of debt should be given a vigorous shake.
I'm not sure I understand what you mean.