Mark Thornton: The Latest Greek Debt Deal Only Works if Government Spending Is Cut

08/11/2015Ryan McMaken

With the latest round of talks between European creditors and Greek debtors, there is renewed talk of austerity. But, as Mark Thornton points out in this video, "austerity" only works when it means actual cutting of government spending on government-employee salaries, on government agencies, and on government programs. Without real cuts, the debt situation can never be resolved. The tempting "solution" right now, Thornton notes, is to just put the problem off into the future when current government officials are out of power. But that will mean just piling more debt on the current debt.

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Contact Ryan McMaken

Ryan McMaken (@ryanmcmaken) is a senior editor at the Mises Institute. Send him your article submissions for the Mises Wire and Power and Market, but read article guidelines first. Ryan has a bachelor's degree in economics and a master's degree in public policy and international relations from the University of Colorado. He was a housing economist for the State of Colorado. He is the author of Breaking Away: The Case of Secession, Radical Decentralization, and Smaller Polities and Commie Cowboys: The Bourgeoisie and the Nation-State in the Western Genre.

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