The word “austerity” has been in the news a lot lately. Austerity means cuts in government payroll or other spending. Trusters of government like to claim that “severe” (Paul Krugman) or “harsh” (the Guardian) austerity measures are being imposed on the people of Greece, or maybe in some other European country.
The truth is that there has been little or no austerity anywhere in Europe in the past decade. Austerity is like the word “deregulation”: it is invoked often but never actually occurs anywhere.
Interestingly, most media discussions of the supposedly severe or harsh austerity measures being imposed on Greece don’t mention many details.
The BBC website provides some information of the deal being considered by Greece: tax INCREASES (including a hike in Greece’s Value-Added Tax to “a full 1 percent of GDP,” a tax INCREASE on restaurants, and a corporate tax INCREASE.
Cuts? a slight cut in Greek military spending and a move to raise retirement eligibility to 67 (which might be considered something of a cut).
In all, Greece’s “austerity” offers appear to foreshadow an even more high-tax, more-socialistic Greece in the coming few years. This, of course, will mean more slow growth and poverty for the people of that once-great nation.
