Article #2 - quotes Paul Krugman, as he would call it; the...

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Marybeth Ibarrientos Political Science Homework #2: Article September 7, 2010 In the article written by Daniel Gross, he exposes the reality of the economic failure of the United States, due to the choices of federal spending. Gross takes the events back to how other countries have dealt with their deficit and growing debt. Not only does Gross explain the harsh regimen of spending cuts and possible tax increases for the British public, but he also relentlessly makes a point to call it an act of austerity. Gross then explains the decisions of Spain, as its government slashed civil-servant pay by 5 percent and froze pensions, leaving one in five Spaniards out of work. Although there is no such similar rhetoric behavior in the United States, a new austerity has been unveiled. Gross explains how unemployment remains at 9.7 percent, having the House of Representatives scale back a proposed jobs bill out of concern for the deficit while states and cities are slashing budgets and raising taxes. In turn for the slashing budgets and raising taxes, he
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Unformatted text preview: quotes Paul Krugman, as he would call it; the pain caucus is in control. Many countries are now being apart of the caucus for different reasons, seeing austerity as a way to avoid the harsh fates, such as the one of Greece. In my opinion, I do agree there is a strong political element to the newfound parsimony. Officials have been calling for wage cuts and tax increases and it has been a harsh act to endure. Although it will be quite difficult to solve the mess left by predecessors, eventually leading to austerity once again. As further stimulus would be the obvious choice for the economy, Obama and his administration believed higher short-term deficits are a greater political risk than slower growth and higher unemployment. For growth to occur, harsh acts are given. Large economies need to run higher shortages in the short term to uphold growth and fix the gaps afterwards....
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