Thursday, April 26, 2012

More cuts

So, it looks like the government will no longer meet its arbitrary target of surplus by 2014/15. Their answer? More cuts! So not only are we looking at a zero-budget this year, but next year as well.

The UK has followed similar austerity policies, and the effects of this madness can clearly be seen there: a double-dip recession, which looks worse than the early stages of the Great Depression. Why? Because cuts to government spending suck demand out of the economy; no-one has any money to spend, so no-one can buy anything, so businesses go under... its a death spiral. And National is marching us right down it, in pursuit of a completely arbitrary target which has been set solely so they can announce success in election year. But the way they're headed, the cost of that "success" will be even more economic pain and suffering for the rest of us, with a side-order of crippled government services to boot.