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

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08/11/2015

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.

 

Mark Thornton on Press TV

Ryan McMaken (@ryanmcmaken) is a senior editor at the Mises Institute. Send him your article submissions for Mises Wire and The Austrian, but read article guidelines first. Ryan has degrees in economics and political science from the University of Colorado, and was the economist for the Colorado Division of Housing from 2009 to 2014. He is the author of Commie Cowboys: The Bourgeoisie and the Nation-State in the Western Genre.

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