Thursday, May 9, 2013

Phony European Austerity

In my blog, European austerity is all about taxation, I argued that tax increases are the thing causing the current recession in Europe, not supposed decreases in public spending.  There are, in Europe as in the USA, idiot politicians and idiot media talking-heads that call the reductions of planned increases (but still an increase) a "cut."   But in an absolute sense there are few actual reductions of spending in the government sector in Europe . 

Have a look at the following graphs:

Change in Government Expenditures since 2007 in %

All of this spending leads to too much debt everywhere. Have a look at the graphs below:

Change in Government Debt from 2007 to 2012 in %

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