Albert Einstein once said that the definition of insanity was, “doing the same thing over and over again and expecting different results.”
Spain, a country that has been decimated by the continuous austerity measure rammed through by its government has again adopted more austerity measure to solve its financial crisis. From the AP:
Spain’s government imposed more austerity measures on the beleaguered country Wednesday as it unveiled sales tax hikes and spending cuts aimed at shaving €65 billion ($79.85 billion) off the state budget over the next two and a half years….
The spending cuts, designed to cut €65 billion off state budgets by 2015, include a wage cut for civil servants and members of the national parliament and a new wave of closures at state-owned companies. Spain will also speed up a gradual increase in the retirement age from 65 to 67. They are to be approved officially Friday at a Cabinet meeting.
Spain has seen two recessions since 2009 and is projected to continue to contract throughout 2012. It defies belief that any responsible government would pass more austerity measure during times like this – it is following the status quo in Europe and following the rest into the economic abyss. Spain won a huge European bank bailout and a reduced interest payment plan, but it’s fragile economy is in dire need of a boost. Cutting spending further without a substantial plan for investment and growth will simply cause the economy to contract even more and prolong the misery that has gripped the nation for four months.
Austerity hasn’t worked thus far, and there’s no evidence it will work in the future. Sadly, the lessons don’t seem to have sunk in, no matter how severe it gets.
Ben Cohen is the editor and founder of The Daily Banter. He lives in Washington DC where he does podcasts, teaches Martial Arts, and tries to be a good father. He would be extremely disturbed if you took him too seriously.