There is plenty of evidence that austerity and cuts are not the cure to the banking crisis and subsequent recession. Actually, massive public sector cuts are only one possible response to the banking crisis. Germany, Iceland and the USA, for instance, took the opposite path and chose to stimulate the economy instead through investing in business and public services. The cuts taking place in the UK are not inevitable, but are political decisions which have damaged those who are vulnerable whilst protecting those who caused the crisis in the first place.
The economy is not like a household budget. This is an evocative metaphor, but it’s not accurate. For a strong economy, we need investment, jobs and functioning communities. In straightened economic times, one role of government is to invest in public services to help stimulate the economy, through providing jobs and helping those who are struggling. We believe the dominant discourse of austerity has been constructed to make us believe there are no alternatives, see the New Economics Foundation report that deconstructs this narrative.
This lecture by the former head of the World Bank, Joseph Stiglitz, is the dangers of inequality.
The Nobel Prize winning economist Paul Krugman, in his article ‘The Austerity Delusion’, highlights why cuts are economically damaging.
Click on the images here to discover more information about why austerity is the wrong cure and why the cuts won’t help the deficit.
Also have a look here for discovering who the biggest “scroungers” actually are.
Here you can find some more information on: Alternatives to austerity.