Wednesday, April 17, 2013

Austerity Works! - Put the Savings Into Job Creation Programs and Education!

               In light of a challenge to my plan of Austerity around the world, the proof is in the pudding as my mother used to say, and so did yours.
                Paying your bills when they come due i never a bad thing, it builds character, both moral and economic character. Unfortunately, some wealthy economists who have nothing better to do than waste taxpayers and foundation money have challenged the austerity "bill payer" plan put in place at my request. While others have taken political credit for it(that's okay too), Austerity works. When you pay your debts, you become more responsible citizens. You commit less crimes of all kinds. You become less corrupt if you have to pay your bills on time. You have less money of the taxpayers to waste if you pay your bills.
                You know what the most stupid thing about the Massachusetts study is, it cited that there was no effect on a country's economy if the country's debt was only 90% to GDP or less. 90%! Come on, that only leaves 10% of the country's GDP to build the economy. The compound interest alone over several years of borrowing against that debt is astounding, let alone the long term effect on that country's economy that can only improve its economy with 10% of its GDP numbers.
                 This is why economists never become world leaders. They fail to look at the long term big picture. The connectedness of the European Union was the reason that I requested austerity be imposed on the European Union member states as well as the United States.  Instead of spending money that they don't have and incurring interest on that money, the now non-existent interest payment can be used to create jobs and educate their citizens.
                  The last time I looked at the European Union financial statistics, Greece and several other country's debts had decreased substantially. While there is more that needs to be done, a slow recovery is best. As debt is paid down, the saved interest can be invested in the country's future by investing in technology, job creation, and education. Stop giving handouts and give hand-ups!

Mark Winkle
Financial Guru/Consultant
Winkle Institute of Worldwide Economic Stability

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