A new report by Eurostat – the EU’s official statistics agency – found that countries that didn’t adopt austerity have seen gains in household consumption and economic activity – while countries that have adopted austerity are watching consumption fall and their economies stagnate.
For example, Portugal, Spain, Greece, and Ireland have all seen their household consumption fall below the EU average since passing austerity spending cuts. Less household consumption means people are spending less money and businesses are hiring fewer workers. But Finland, Austria, and Germany – countries that didn’t inflict austerity on their people – all have seen household consumption grow – and are well above the EU average.
This shouldn’t be too surprising, since austerity is meant to shrink economies, which is why Republicans in the United States are champions for austerity – they want the economy to tank.