Tag Archives: Austerity

Austerity In The EU: Myth?

All we hear from the left is that austerity programs in Europe are causing the continued problems over there.  I posted on Monday that the austerity” the left is bemoaning doesn’t exist:

It would seem that with the exception of Greece, there is no European austerity “problem.”  Europe seems to be growing their government just fine and just as they’ve always done.

The problems experienced in Europe right now are not the result of reduction in spending.

Loyal reader Scott called shenanigans:

You have to look at 2011 and especially2012, you’re only going through January 2010, that’s before talk of austerity budgets really took hold. Hollande was talking about real aspects of the EU pact and Sarkozy’s plans — none of that is captured in data that go through January 2010.

So, in order to dig deeper, I’ve gone and found data for the entire EU, in Euros though 2011.

And the new data doesn’t change the point I made earlier in the week.

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European Austerity: A Myth?

France will have a new President.

Yesterday in France, the Socialist Francois Hollande defeated the sitting French President:

…Hollande defeated centre-right incumbent Nicolas Sarkozy on Sunday…

It seems that the President-elect ran on a platform of austerity-rejection:

Hollande has promised more government spending and higher taxes — including a 75-percent income tax on the rich — and wants to re-negotiate a European treaty on trimming budgets to avoid more debt crises of the kind facing Greece.

I’ve always believed the left when they claim that Europe is undergoing a time of “fiscal austerity.”  Then I bumped in Coyote, who questioned it:

It is almost impossible to spot this mythical austerity beast in action in these European countries.  Sure, they talk about austerity, and deficit reduction, and spending increases, but if such talk were reality we would have a balanced budget in this country.  If one looks at actual government spending in European nations, its impossible to find a substantial decline.  Perhaps they are talking about tax increases, which I would oppose and have been occurring, but I doubt the Left is complaining about tax increases.

Seriously, I would post the chart showing the spending declines but I can’t because I keep following links and have yet to find one.  I keep seeing quotes about “commitment” to austerity, but no actual evidence of such.

So, I thought I would look.

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