Is Austerity self-defeating?

Prominent economists in the UK declare that 10 years of financial hardship should have been avoided with fiscal stimulation. Are they correct?

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Cierzo · M

Fiscal stimulation? That sounds like stupid keynesianism. When national debt is high, both state expenses and taxes must be cut. Tax cuts will make it easier to create new business and increase consumption, therefore although tax rates are lower, state revenue will not.

Burnley123 · 41-45, M

@Cierzo Businesses only invest if there is demand and there is no demand if people are not spending.

Cierzo · M

@Burnley123 Then lower taxes so that people have a higher income and can spend.

Burnley123 · 41-45, M

People on higher income proportionally save a lot more if their money. Poorer people spend a higher percentage on commodities because they have to.

Cierzo · M

@Burnley123 There is the middle class, the engine that keeps economy going, who has been too heavily taxed in the last decades.

Burnley123 · 41-45, M

@Cierzo Not heavily taxed by historic standards but yes, the tax burden does fall on them. We need to find a way of taxing billionaire tax avoiders.

Cierzo · M

@Burnley123 I think corporations should not be taxed， but their owners. And the bulk of taxation should be on tariffs and VAT on luxury goods