Portugal Election Shows Anti-Austerity Feelings

[Economy 53,135]

http://www.wsj.com/articles/portugals-election-gives-spanish-prime-minister-cause-for-concern-1444069630

 

Despite being re-elected, Prime Ministers "Passos Coelho" Right-Winged party has lost much support this time by winning by minority

 

Although Portugal has seen substancial improvement in its finances, exports and manufacturing setting the stage for long term sustainable economic growth, such restructuring has come at great sacrafice

 

After years of tough austerity causing a decline in living standards, the main socialist opposition has gained ground.

[Better Day 5,766]

I still can't people fall this Austerity. It is just causing poverty and misery

[Melech 9,900]

Not surprised 

[Economy 53,135]

I still can't people fall this Austerity. It is just causing poverty and misery

i dunno why you think that. If you have serious debt problems because youve been overspending beyond your means and now you got a serious issue, if you dont do austerity whats the alternative? Do nothing and let it get worse?

 

Portugal made some tough choices but this restructuring has made positive changes. The growth in exports and manufacturing will support real long term growth not the fake superficial growth you get when you run deficits to put into the economy so your country can keep consuming more than it produces  

[Better Day 5,766]

i dunno why you think that. If you have serious debt problems because youve been overspending beyond your means and now you got a serious issue, if you dont do austerity whats the alternative? Do nothing and let it get worse?

 

Portugal made some tough choices but this restructuring has made positive changes. The growth in exports and manufacturing will support real long term growth not the fake superficial growth you get when you run deficits to put into the economy so your country can keep consuming more than it produces  

I would say shove more money. I mean you surely have to spend money to make money. If you keep cutting public sector jobs, welfare. It means less money is going into the economy. 

Our government is obessed with austerity, or in my terms, steal from the poor and give to the rich. They are cutting police numbers (causing mayhem). Our healthcare system is being bruised. Welfare is being cut beyond a joke (Innocent people suffering, benefits being slashed, people dying due to tougher policy on benefits.

This is all in the name of capitalism. If this austerity keeps going we will be in a worse state than Janet Jacksons career. 

[Economy 53,135]

I would say shove more money. I mean you surely have to spend money to make money. If you keep cutting public sector jobs, welfare. It means less money is going into the economy. 

Our government is obessed with austerity, or in my terms, steal from the poor and give to the rich. They are cutting police numbers (causing mayhem). Our healthcare system is being bruised. Welfare is being cut beyond a joke (Innocent people suffering, benefits being slashed, people dying due to tougher policy on benefits.

This is all in the name of capitalism. If this austerity keeps going we will be in a worse state than Janet Jacksons career. 

you know what, if that theory had any truth to it then all countries over-spending should have robust enough economic growth to keep debt to GDP down

 

But heres the thing... your not going to get a 1:1 ratio... and by that I mean for every $1 the Government increases in spending, you are not going to stimulate the economy enough to increase tax revenue by the same equivalent amount so your still increasing your deficit

 

May increasing spending by 10% might increase GDP enough to raise tax revenue by 6% lets say... but you still increase your deficit by 4% (the number i just gave is an educated guess to give you an idea i dont know what it typically would be)

 

Basically you cant spend your way out of a debt crisis if thats what your in. You have to face reality that over-spending in the past now manifests bad concequences that forces you to make tough calls.

 

Im wondering about your opinion on this on how you think spending more helps the situation. Please explain