AUSTERITY IN IRELAND COMPARED WITH OTHER ECONOMIES
Unfortunately the Greek economy was a house of cards held together by government spending. The Greek government has kept borrowing more and more money even after the current crisis started. The past few years have proved that the Greek Government does not have the right people for managing its economy. The Greek people are also not helping much, as they do not seem to have understood the seriousness of their economic situation. Opposing the austerity measures proves that. There are lots of fundamental forces in an economy like expectations of citizen, money illusion, cost wage lag, anomalies perception, lag perception etc., which can be perceived only by the erudite mostly and the wise. These …show more content…
Once the citizen don't have the maturity to understand this there will be crisis like in Greece. Greeks have been enjoying lavish life so far and if the austerity measures have been imposed on Greece then these people have to compromise a lot on their living standards which they never want. Before this critical situation of Greece, the people their used to have a very smooth life like taking early retirement, minimal travelling expenses or huge pension funds. But if the austerity imposed they will need to work hard and drastically change the life style. Fundamentally, Greeks do not understand the importance or necessity of these austerity measures. Thus the austerity was a failure in Greece.
Yet another to be crippled due to the economic crisis was Spain. Spain which is one among the most important economies in the world was suffering greatly with the least GDP of 0.9 percent during the beginning of the 21st century …show more content…
It may even have slowed them down at certain points. But the two countries' performance makes it hard to accept the view of another anti-austerity Nobel laureate, Joseph Stiglitz, who argued that cuts in government spending administered in crisis-hit European countries were "contractionary." The Spanish and Irish economies are growing despite stingier governments. Arguably, it makes them healthier than if they had had the opportunity to try to fix their problems by printing money. As for statistics, they show that of the three countries, the one that lowered its public spending to GDP ratio the most got the best results: Ireland's economic output is back at its pre-crisis level, it's the fastest growing economy in Europe, and its unemployment level is down to 9.7 percent from the 2012 peak of 15
Unfortunately the Greek economy was a house of cards held together by government spending. The Greek government has kept borrowing more and more money even after the current crisis started. The past few years have proved that the Greek Government does not have the right people for managing its economy. The Greek people are also not helping much, as they do not seem to have understood the seriousness of their economic situation. Opposing the austerity measures proves that. There are lots of fundamental forces in an economy like expectations of citizen, money illusion, cost wage lag, anomalies perception, lag perception etc., which can be perceived only by the erudite mostly and the wise. These …show more content…
Once the citizen don't have the maturity to understand this there will be crisis like in Greece. Greeks have been enjoying lavish life so far and if the austerity measures have been imposed on Greece then these people have to compromise a lot on their living standards which they never want. Before this critical situation of Greece, the people their used to have a very smooth life like taking early retirement, minimal travelling expenses or huge pension funds. But if the austerity imposed they will need to work hard and drastically change the life style. Fundamentally, Greeks do not understand the importance or necessity of these austerity measures. Thus the austerity was a failure in Greece.
Yet another to be crippled due to the economic crisis was Spain. Spain which is one among the most important economies in the world was suffering greatly with the least GDP of 0.9 percent during the beginning of the 21st century …show more content…
It may even have slowed them down at certain points. But the two countries' performance makes it hard to accept the view of another anti-austerity Nobel laureate, Joseph Stiglitz, who argued that cuts in government spending administered in crisis-hit European countries were "contractionary." The Spanish and Irish economies are growing despite stingier governments. Arguably, it makes them healthier than if they had had the opportunity to try to fix their problems by printing money. As for statistics, they show that of the three countries, the one that lowered its public spending to GDP ratio the most got the best results: Ireland's economic output is back at its pre-crisis level, it's the fastest growing economy in Europe, and its unemployment level is down to 9.7 percent from the 2012 peak of 15