Monday, October 1, 2012

A pig is a pig by any other name

Whatever you call it, laissez-faire, Reaganomics, austerity, corporatism, or something else, that model of economics supported by many politicians is inherently flawed. The solution this philosophy consistently has to unemployment is to fire public sector workers and bust unions. No incentives for hiring workers, no eliminating barriers to starting small businesses, no health care to those too sick to work, no training for tomorrow's inventors, and cutting basic math, economics, civics, and science from public schools increasing the time the unconnected intelligent youth have until they can start their own businesses successfully.

Austerity teaches that if unemployment is high you increase it, if small business are too rare you limit access to funds by eliminating banking insurance (the opposite approach saved the American financial sector and through that the whole economy in 2008). If this is right it would imply the solution to a drink being too cold is to put ice in it or if your meat is overcooked to keep cooking it, and that -1+-1=0. That adding to a problem will solve it. This is nonsense.

The bloggers of economics that have millions of followers need to start broadcasting this. Suicides are up in Southern Europe. The countries practicing austerity have seen their unemployment rates go up over the past two years and suicides are rising. Lives of real people are at stake in this experiment that is as unsuccessful as it was between 1929 and 1933 when America did the same thing. The longer it is done the longer the recovery will be. This is very not funny. Wake up world. All the data you need to prove this is free on google data.

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