Austeridiocy: Budget Cuts Take Money Out Of The Economy
By Dave Johnson
August 12, 2011 – 1:53pm ET
It Didn’t Work So Do It More
See if you can find the logical flaw in this AP news report: French growth sputters to a halt in 2nd quarter,
The French government was put under further pressure to cut deeper into spending after figures Friday showed growth in Europe’s second biggest economy ground to a halt in the spring, in another sign that the global economy is facing rising recessionary threats.
With the worse-than-expected French growth figures suggesting a possible budget shortfall this year, government ministers may have to find additional savings…
Right, the cuts are slowing the economy, which means the deficits are worse, so they “have to find additional savings.” Cutting government – taking money out of the economy – slowed their economy, so they think they’ll solve the problem by taking more money out of their economy. Austeridiocy.