Austerity is not the only way to make up for massive government debt and lack of revenue following self‑induced disasters in private finance. There are fairer ways to balance the books.
"The financial sector has been saved and the recession contained, but only by sweeping most of the problems under the carpet. This could easily lead to disaster in the near future..
Savage cuts are not the only solution. Interesting alternatives have been brushed aside..
Financial transactions, institutions and other players could all be made to pay for the correction of the problem for which they were responsible. The only acceptable principle for fiscal adjustment is that the financial sector should bear the entire cost of the crisis it caused..."
Frederic Lordon is an economist and contributor to Le Monde diplomatique.
to read his article published in March 2010, click on
http://mondediplo.com/2010/03/02financialreforms
www.freewebs.com/mbtranslations/
Original: How do we get out of here? Alternatives to Austerity