We need to cut back austerity

After a few hours at OPSEU's youth day event the topic of austerity came up. Austerity, says Harper and his neocons, is the solution to our debt crisis. They liken it to our household budget: "if you don't have enough money to pay your bills then you cut back". This is shit logic. While it may be true that I do cut my expenses if I don't have enough money, I am not, despite any plan to the contrary, a country.

Applying household spending rules to government spending makes as much sense as applying household leadership rules to Canada. (David Johnston and Steven Harper are the Mom and Dad & business is the favorite child). Why stop there? If financial rules can be borrowed with success, no staying out past 11 on a school night? Prison? No but you'll loose your phone privileges or for the most heinous offenses perhaps a time out. Harper is not working with a family budget he is dealing with a government policy. The budget is not just numbers. (most government budgets relate to numbers but with our trend toward omnibus bills it seems not so much anymore)

Government spending has important benefits when done properly. It can stimulate business growth and employment. It can be used to support demand when consumer confidence fluctuates and it can be withdrawn when markets overheat. It is an important part of monetary policy.

As an idea cutting government services when times are tough does two things:
1) reduces services at in need populations when the in need population is growing
2) displaces workers providing those services. Increasing the number of people the fraying social safety net needs to catch.

Sure some things could be cut: Tax breaks for oil companies (what are they going to do, move? Fine, we keep the tar sands) The senate (ever seen a senator do anything?). But by and large spending on the social safety net is a good idea.

Why? Because nothing stimulates consumer spending like giving money to low earners. They spend 100% of what they have to get by and almost immediately return what they have to the economy. If you give money to the top earners and hope it will trickle down you ignore the realities of executive bonuses , stock dividends an capital flight. not to mention the fact that higher corporate profits are not tied to new jobs or raises to current employees. Austerity as a solution to a jobs crisis is an attempt to dig oneself out of a hole.

Sol.
Labourguydave