The debate on austerity v stimulus is again the main focus of attention. Particularly due to the recent results of the Greek and French elections where opposition to European “redistributive austerity” is gaining strength. Even though they don’t refer to it as redistributive austerity, but as “painful cuts that are hurting growth”. Even in the very phrasing of the debate as ‘austerity v growth’, it is obvious that people don’t really understand what austerity is, and even less what their governments are doing. … governments sometimes do tend to use tax hikes to lower the deficit. But essentially the very definition of austerity primarily implies cutting spending and cutting entitlements … Continue reading Vuk Vukovic