So, we take another fun jaunt on the circular argument merry-go-round.
Once again, the austerian hordes are demanding that we cut, cut, cut. They repeat, ad nauseam the ever-reducing deficit figures, insisting that these figures demand we eliminate the deficit NOW!!1!!one!!
They stay resolutely silent, of course, on the immediate consequences. There's a pretty obvious reason for this: Greece. They imposed heavy cuts and the entire economy shrank 20%. Very very stupid of the austerians to have demanded that, they now concede. If a Company X owes you money, you might demand that Company X starts cutting spending. But if the spending cuts cause Company X to lose 20% of its customers in a very short space of time, you'll call an end to the cuts if you have any desire to eventually get some of your money back. No company can survive long if it's losing 20% of its customers every few years. You don't get more milk by beating the cow to within an inch of her life. In fact you get less milk as it doesn't lactate as much while it heals.
So I'm putting you on the spot now. Every austerian, tell me what you imagine will happen in the immediate aftermath of imposing €10bn of cuts. GDP will either rise of fall as a result.
1: Will GDP go down immediately after the cuts? Yes/no question, please do not evade a clear answer.
2: If GDP goes down, how far will it go down? At what figure, if any, will GDP cease to fall? Give a figure, please do not evade a clear answer.
NB:In Greece it was 20%, and they only stabilised at that figure because they received a transfer from the Troika, meaning the Troika's Greek austerian plan was a total failure.
3: Will GDP, at some point subsequent to the fall, start to rise again? Yes/no question, please do not evade a clear answer.
4: If some kind of GDP growth does happen, from whence do you see the demand coming from to fuel this growth? Who's going to be buying the goods and services that makes this recovery happen? Specifics, please. Will this demand be mostly from within Ireland or mostly external? Why would they be spending in Ireland then if they're not spending in Ireland now? Don't handwave it away, tackle the issue.