Like I said. The points you mention never come up when it's about the military spending. Even with all that "austerity" Greece was capable of buying sub marines from the German government for a very hefty price. Seems like that stuff is more important than spending it on the health care system or pensions.Austerity didn't cripple Greece and Spain, 'free shit' did. People, not just corporations, were doing their damndest to avoid taxes. Leeches who took advantage of the system ruined everyrhing.
Both the UK and France had to raise taxes to keep their ballooning social systems afloat. It was inevitable.
More strings man.
And I have said, REPEATEDLY, we bailed out banks because ir was cheaper than invoking FDIC and having the government/tax payers for everything.
What you call "free shit" is a form of investment. In infrastructure, education, health, your people basically, making sure that they have access to it and that it's affordable, so education and health is not a question of how your status. If you're not ready to use your resources to improve the live of your people as a government, then what's the point?
The EU alone is loosing each year trillions due to tax evasion. Cum-Ex deals have cost the German government alone 50 Billion. Modernizing all our schools would be about 30 billion. There. There is all your "precious" money going. And not "wasted" on "free shit".
Have you ever heard of The paradox of thrift?
The paradox of thrift (or paradox of saving) is a paradox of economics. The paradox states that an increase in autonomous saving leads to a decrease in aggregate demand and thus a decrease in gross output which will in turn lower total saving. The paradox is, narrowly speaking, that total saving may fall because of individuals' attempts to increase their saving, and, broadly speaking, that increase in saving may be harmful to an economy. Both the narrow and broad claims are paradoxical within the assumption underlying the fallacy of composition, namely that which is true of the parts must be true of the whole. The narrow claim transparently contradicts this assumption, and the broad one does so by implication, because while individual thrift is generally averred to be good for the economy, the paradox of thrift holds that collective thrift may be bad for the economy.
Social Programms have been implemented to boost economies! That's the whole point behind it.
1. Welfare payments can stabilise the economy
In a recession people lose their jobs, businesses stop investing and the economy risks a downward spiral.But social security, benefits and tax credits kick in, propping up incomes and acting as ‘automatic stabilisers’. Government spending increases temporarily to ensure people still have money to spend on basic needs. This means businesses have customers,keeping the economy stable and preventing a terminal spiral of decline.
2. Countries that increased welfare payments had the strongest economic recoveries
Families on low incomes are most likely to spend extra money quickly in their local shops and services, boosting demand and helping businesses. The International Institute for Labour Studies found: ‘Social and cash transfers [following the credit crunch] not only assisted those in need, but by putting cash in the hands of those most likely to spend it, helped to shore up household consumption. For this reason, countries that strengthened the policies towards income transfers managed to recover faster than others.’
3. Cutting welfare can damage growth
When deep cuts to welfare dramatically reduce the incomes of families who are already on low incomes, the opposite of fiscal stimulus happens: fiscal hindrance. Billions of pounds are removed from the active economy, so struggling businesses lose customers and lay off more staff. A vicious cycle is created.
4. Welfare cuts are shrinking the UK economy
Economists say that in a recession, increased welfare spending has a strong multiplier effect of around 1.6. This means every £1 is worth £1.60 to national income once it has worked its way around the economy through shop tills and pay cheques. When welfare is cut, the multiplier works in reverse. So £20bn of welfare cuts could depress the economy by as much as £32bn – more than 2% of GDP.
https://think-left.org/2012/09/11/austerity-the-paradox-of-thrift-and-a-great-graph/
This is what Portugal did to combat their economic issues and they recovered MUCH faster than Greece and Spain while they are still dealing with a decreasing standard of living. Go figure.
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