Quote:
Originally Posted by Flames Fan, Ph.D.
So what else would be part of your austerity, other than government pensions?
Also, as you reduce government outlays, you also reduce public spending, which is a part of the profit equation for private companies. How do you propose to avoid the aggregate fall in demand which will worsen the recession?
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Well with Greece, therein lies the rub. Everyone wants the government to cut spending, but the government spending accounts for about half of the economy. It will be a punishing blow to the citizens, and while its easy for us across the pond to say "well it has to be done", its also hard not to vote with your wallet.