The reality of Austerity Plans

On Bloomberg Businessweek, The summary revealed how austerity is carried out

The first thing I see this, I would like to make an attempt to categorize them.


A. Increase revenue: Tax
1.) VAT increase: On Fuel (Greece, Italy, and heard from friends that NL is going to do the same.)
2.) Property Tax: Ireland, Greece

B. Reduction of Cost:
1.) Cut back social benefits or charge fees: such as babe benefits(Spain, Hungary), student benefits(Hungary)
2.) Cut back government employee benefits or increase their working hours: Spain, France

C. Modification of labor law:
This comes more outside of this report. Germany Labor laws are being more flexible for temporary workers, France, Bloomberg just had an article discuss why in France there are so many 49 person companies, and these countries are also modifying labor code on benefits for labor. That could consider an attempt to make hiring much easier to create jobs.


It is hard to argue which "economic measures" are suitable for the on-going situations. Yet from time to time we still see these: A township head somehow still get a bigger paycheck, the rich can always find ways to evade tax, and the "friendly measures" to help companies create jobs does not work out the way they intend to be. Yet, the cut measures are very efficient. The education and public care facilities are the first to tumble....the VAT increase make no one, the poor and the rich , to escape.

So, what Austerity means? Are the knives on the neck of the right head?