Monday, April 30, 2012

Getting It The Wrong Way Round

Unsurprisingly, Spain is officially in recession. Governments everywhere have decided that austerity and deficit cutting - or at least the appearance of trying to cut the deficit - are ends in themselves. But they never are. Even if you believe it's the most important thing, the way to cut government borrowing is to have more people have jobs so there's more tax revenue being collected. Firing everyone and destroying your economy does not solve your borrowing problem.

There's evil here, perceived opportunities to gut the welfare state and labor protections, but there's also a whole lot of stupid.