Are predictions of a “new age of austerity” pure hyperbole?
Believing as I do that austerity is one of the greatest tools for expanding awareness, I do think it is a statement of potential, not merely hyperbole. If more people are becoming aware that all the ‘stuff’ they have accumulated in their efforts to be happy has not given them that happiness they sought surly they will look to something more substantial at some point. The current financial crisis across the globe is creating many shifts in peoples thinking. Where will it lead? Some say to a “new age of austerity”. Time will tell if there is something more to it than pure hyperbole and I am hopeful.
To some extent no, governments have borrowed too much and so continuation of the current government borrowing route would lead to fiscal problems. However whether it will be to the level that people think is yet to be discovered, China and many other countries have vast reserves which they can spend to boost their economies without any risk to their fiscal positions. I don’t see much need of austerity for them. The USA and the UK however will have little choice but too raise taxes and cut spending in the future, probably within the next two years in order to avoid the risk of a fiscal crisis.
