Monday, May 13, 2013

Austerity or Prosperity?

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3 comments:

Anonymous said...

How do we get people to abandon the underground economy and how do we reduce youth unemployment while we attempt to do this?

May 13, 2013 at 3:36 PM
Anonymous said...

It is impossible to abandon the underground (Black) economy or stop it running, as it has been found globally in many more sophisticated tax regimes. The problem that people have is if they commence to declare all of their income, they are concerned about "back taxes" which concern must first be dispelled. The only way to do this is to have a "tax amnesty" whereby it is published that any undeclared earnings in the past will not be pursued from taxpayers that commence playing a straight game from now. The increase in the collection of revenue's will then be able to be applied to social programmes and shown as being dedicated to the reduction of unemployment.
Max Johannes

May 15, 2013 at 10:54 AM
Anonymous said...

This article is a bit misleading. Austerity was never seen as a growth strategy. Austerity represents a correction when a country spends beyond its means for an extended period and is now in a situation where foreigners are no longer willing to finance its over consumption.

When ou run out of money what do you do? Unless you have a rich godfather to bail you out, you have to put your house in order to get foreign investors to invest in your country.

That is the heart of the issue. Austerity every one knows is contractionary in the shor term at least all sensible economist knows that fact. So please do not misled the interpretation of the debate. If no one will fund your deficit how will you finance it...

May 20, 2013 at 12:34 PM

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