Some call it the Sequester. We call it austerity.
The spending cuts aren't even the worst part of austerity. The destruction of jobs and stifling of business activity -- which will lead to more cuts -- are the worst part of it.
The Europeans tried austerity and it's destroying the Eurozone. Alternet did a nice summary last month:
Most of the recent economic data out of Europe has been exceedingly grim. A record high number of workers across the Eurozone are unemployed. Economies are shrinking. Debts are rising.
The anecdotes, though, are even worse. Hospitals are asking patients to supply their own syringes due to lack of funds. Trees on public land are being cut down by workers desperate for firewood to warm their homes. An entire generation of young workers is going to experience lower wages for the rest of their lives, due to years of being unemployed while in their 20s.
At this point, it’s safe to say that Europe’s response to the financial crisis of 2008 and its ensuing recession has failed. Austerity packages that were meant to jumpstart business investment and reduce what were viewed as unsustainable debt loads have instead crippled growth and caused untold amounts of human misery.Memo to premium-wine enthusiast Paul Ryan: Austerity is the opposite of a pro-growth policy that promote prosperity.