I’m intrigued by Duncan’s idea of an austerity curve. - the idea that:
cutting government spending up to a certain point leads to lower deficits but beyond a certain point, the impact of lower growth and higher unemployment means that deficits get worse as the government cuts more.
Child labor has a dark history around the world. But banning child labor outright may not work in countries with systemic, widespread poverty and no social security programs to help out poor families in dire straits.
One sure way to know voters are fed up with the economy is when politicians are thrown out on their asses en masse. That is exactly what happened down under as Australia PM surprised by Labor rout in state election.
Australian Prime Minister Julia Gillard said on Monday she was surprised at the scale of her ruling Labor party's defeat in state elections, widely seen as a dire warning for her fragile government.
From today’s FT:
Mr Hollande himself has acknowledged that the state has got too big. “Public spending has reached 57 per cent of national wealth. It was 52 per cent five years ago. Do we live better for it? No,” he said late last year.
Agnès Verdier-Molinié put it differently:
“The reason spending has exploded is the multitude of different benefits and all the layers of administration,” she says.
In Greece, Prime Minister Antonis Samaras coalition has split. The result is yet another delay in an austerity vote required for the next tranche of loans to Greece, and the PM warns of 'chaos'.
Greece's conservative Prime Minister Antonis Samaras is at odds with the Democratic Left party, a coalition partner, which is threatening to vote against the new austerity measures unless labor reforms included in them are scrapped.