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Why Politicians Hate Austerity - In One Simple Chart

Tyler Durden's picture




 

Just as our political class in the US is spending its time focused on the tax-'em-til-they-bleed side of the equation as opposed to the cut-em-to-the-bone austerity side of the income statement; so the evidence is clear (thanks to the following chart) - austerity doesn't get you re-elected. When all that matters is your next government paycheck for your 'elected' position, far from being for the people, austerity is avoided as vehemently as possible. Not only does social unrest increase (as the 'people' have become used to unsustainable standards of living) but incumbent popularty sinks - rapidly.

 

 

Chart: Citi

 

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Thu, 11/15/2012 - 18:04 | 2985838 doomandbloom
doomandbloom's picture

as compared to US charts?

Thu, 11/15/2012 - 18:15 | 2985879 VulpisVulpis
VulpisVulpis's picture

I, for one, welcome our new austerity overlords.

Thu, 11/15/2012 - 18:51 | 2986003 Beam Me Up Scotty
Beam Me Up Scotty's picture

What austerity?  I know lots of so called poor people, who have top tier Directv, 3 cars, have a house, have Iphones etc etc.  Most people in this country don't even know what austerity means.

I'd say if there is any austerity at all, its for people who actually have a job whether its minimum wage or $250k/yr.  They are getting nailed by higher fees, property taxes, and inflation on food and fuel.  And if they are a saver, they aren't getting squat for their savings from the bank.  Theres your austerity.

Thu, 11/15/2012 - 19:40 | 2986159 AldousHuxley
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austerity of not, looks like true colors come out and politicians lose popularity over time.

 

same for US presidents as dirty political kickbacks surface over time.

 

don't mistake leasing versus ownership. poor people lease. their cars are owned by banks, homes are owned by mortage issuers, iphones are on a monthly lease as well as cable TV. Rich people might have the same thing, but they have perpetual ownership.

 

 

 

Thu, 11/15/2012 - 20:21 | 2986275 hooligan2009
hooligan2009's picture

anyone earning 250k a year is rich. that number as the middle class (glass?) ceiling is around 150,000 a year too high. middle class is centred around the mode income and that is 50,000

Thu, 11/15/2012 - 18:06 | 2985848 Rathmullan
Rathmullan's picture

Neither does getting strung up and being hanged from a lamp post or having your head impaled on a stick.

Thu, 11/15/2012 - 18:16 | 2985885 Rathmullan
Rathmullan's picture

Thu, 11/15/2012 - 20:19 | 2986271 hooligan2009
hooligan2009's picture

heh!

Thu, 11/15/2012 - 21:08 | 2986380 sleepingbeauty
sleepingbeauty's picture

For many a politician, being impaled would greatly improve their popularity.

Thu, 11/15/2012 - 18:08 | 2985851 buzzsaw99
buzzsaw99's picture

approval ratings do not preclude re-election. the same usa congreff has had 10% ar for the past twenty years.

Thu, 11/15/2012 - 18:30 | 2985943 Spastica Rex
Spastica Rex's picture

I only hate your Members of Congress, mine give me money.

Fri, 11/16/2012 - 01:45 | 2986850 tickhound
tickhound's picture

I guess I have no members of Congress, cuz nobody gives me shit. It's all take take take....

Fri, 11/16/2012 - 08:30 | 2987085 kralizec
kralizec's picture

I disagree, I think plenty of people give you shit.  ;)

Thu, 11/15/2012 - 18:08 | 2985853 Coldsun
Coldsun's picture

They must protect their dynasty at the cost of their citizens and their future. Well done whores, well done.

Thu, 11/15/2012 - 19:42 | 2986169 AldousHuxley
AldousHuxley's picture

BUSH

CLINTON

CLINTON

BUSH

BUSH

CLINTON-Obama

 

last 24 years has been dominated by two dynasties.

Thu, 11/15/2012 - 21:00 | 2986360 Herd Redirectio...
Herd Redirection Committee's picture

If you even consider them to be separate and distinct.

Thu, 11/15/2012 - 18:11 | 2985866 The Gooch
The Gooch's picture

GUILLOTINES and/or 

from this perch I am a sniper

Thu, 11/15/2012 - 18:16 | 2985882 Hobbleknee
Hobbleknee's picture

Why would a puppet politician care about reelection?  Once they're in the system, they're set for life, and the masters pulling their strings love austerity.  Austerity means you pay more taxes and get less in return, and in a few years, everyone will be a happy Swede, paying 80% taxes, worshiping government, thinking mediocre first-aid is the best "free" health care in the world.

Thu, 11/15/2012 - 18:33 | 2985888 Rainman
Rainman's picture

Does this mean the stupid muppets really do vote for the conitician who gives them more cheese ? Mittens got blackballed for saying something like that. Say it ain't so ! 

Thu, 11/15/2012 - 18:54 | 2986018 LMAOLORI
LMAOLORI's picture

 

 

Remember this when you hear young people whining about the tax bill or entitlements 

The 49 Percent That Defeated Romney: Young Voters

http://www.bloomberg.com/news/2012-11-07/the-49-percent-that-defeated-ro... ">http://www.bloomberg.com/news/2012-11-07/the-49-percent-that-defeated-ro...

 

Thu, 11/15/2012 - 20:02 | 2986228 SilverMoneyBags
SilverMoneyBags's picture

Ron Paul is winning the battle for the other 51%. They just hated Romney because he is Obama lite.

Thu, 11/15/2012 - 18:24 | 2985917 Cow
Cow's picture

Who killed Kenny?

 

Thu, 11/15/2012 - 18:26 | 2985927 Sockeye
Sockeye's picture

We've decided we can vote ourselves free stuff, what could possibly go wrong?

Thu, 11/15/2012 - 18:27 | 2985933 falak pema
falak pema's picture

looks like a bunch of Oligarchs with flaccid ones. Too much partying in the past?

Thu, 11/15/2012 - 20:07 | 2986239 SilverMoneyBags
SilverMoneyBags's picture

LSD in the 60s, cocaine in the 70s, crack in the 80s, pills and meth from the 90s current...wonder why the boomers are broke? They spent all of their money on drugs.

Fri, 11/16/2012 - 01:40 | 2986845 Lord Koos
Lord Koos's picture

Drugs used to be cheap...

Thu, 11/15/2012 - 18:47 | 2985994 ironymonger
ironymonger's picture

Until baseline budgeting is universally held in contempt as fraud, there will be no austerity.

Thu, 11/15/2012 - 19:23 | 2986108 odatruf
odatruf's picture

Until more than a fraction of a percent of the population understands what baseline budgeting is, there is no hope of it being held in contempt as fraud. Ergo...

Thu, 11/15/2012 - 18:56 | 2986022 Imminent Collapse
Imminent Collapse's picture

Austerity?  Does that mean spending no more than what you earn?  Outrageous!

Thu, 11/15/2012 - 19:22 | 2986105 odatruf
odatruf's picture

No, I wish. It only means not spending much more than you did last year even though last year you had to borrow 1/3rd of what you spent.

Thu, 11/15/2012 - 19:04 | 2986054 Your Creator
Your Creator's picture

It's not free it's hidden taxes built into every product you buy.  You're payin either way. But with goobermint running the insurance racket expect more mediocracy.

Thu, 11/15/2012 - 19:52 | 2986191 EvlTheCat
EvlTheCat's picture

Correction, politicians do not hate austerity as long as they can blame it on someone else.

Thu, 11/15/2012 - 20:00 | 2986218 SilverMoneyBags
SilverMoneyBags's picture

Austerity should have no impact on you if you are a self reliant and responsible person. I've never received a penny from the government and I'm doing just fine. Yes, it is possible.

Thu, 11/15/2012 - 20:51 | 2986341 midtowng
midtowng's picture

Austerity shouldn't be popular. It's not how democracy works.

Thu, 11/15/2012 - 21:34 | 2986454 septimus
septimus's picture

Government CAN't fix the economy and everyone knows that, that's why we're still in this goddamn recession. When politicians play GOD with economics, only shit happens. 

http://www.penurystreet.com/can-government-fix-economy/

Fri, 11/16/2012 - 01:39 | 2986843 Lord Koos
Lord Koos's picture

If they hate it so much, why is it being implemeted all over Europe?

Fri, 11/16/2012 - 03:27 | 2986917 thurstjo63
thurstjo63's picture

What's amusing is all this talk of austerity. Previously austerity focused on reducing government spending in order to leave more money in the hands of people in the private sector to do with as they wished. That could be consumption, savings or investment. In any case, it was a more efficient use of money than could ever be done by government. What we have here is the reduction in government spending not to permit the public to keep more of their hard earned money but in order to pay off investors and banks for debts that cannot be repaid by any means except by blowing up the economy. That's not austerity, that WEALTH TRANSFER!!!

Fri, 11/16/2012 - 03:32 | 2986922 q99x2
q99x2's picture

I'll face the austerity if that is what it takes to get rid of Feinstein.

Fri, 11/16/2012 - 07:00 | 2987016 Fort
Fort's picture

Dutch politicians and leaders are confused. They are following the rules, but end of day they saw a bad quarter for the Dutch economy. Interestingly they are not looking to blame themselves. First of all everything deteriorated or was worse than expected. Export for instance grew, but less than expected. Unemployment grew as well more than expected. One scape goat was mentioned the consumer whom seems to be unwilling to spend. At least that is according to our brilliant leaders the cause of the down turn. There were highlights as well. Government spending increased as did health care expenditure.

Our leaders still seem to believe they are doing the right thing. They increase regulation leading to an increased number of government employees. They increase health care cost and regulation and continue to siphon off from whom ever is still able to pay some wealth to distribute it into their own ever increasing need. They funded heavily into the PIIGS and provided loans that not only did not pose any risk at all those loans gave us a handsome return. Imagine that are they not brilliant. But how did they fund their own increased expenditure, well by increasing government debt and increasing the burden on households. They fail to understand that the result of this increased burden results in a decrease of household spending. That part apparently is too hard to understand for our esteemed leaders. What do I know; I mean all I do is try to manage the finances of a small business enterprise. In a small business it is quite simple. If the demand for your product diminishes one usually does not meet the drop in revenue with an increase in prizes as this is likely to result in even less demand. One decreases expenditure.

This won't work for a big government apparatus of course. If government started to decrease spending then it would have been so much worse. Our esteemed and brilliant leaders therefore have made plans that will ensure costs in health care will continue to rise and they earn more taxes to support their good work. Now if that damned consumer will just stop saving and please just start spending everything will be fine.

We also had the highest inflation for years (2.9%) despite the fact that yoy average house prises dropped 12%. Damn you Dutch consumer just go out there and spend more, borrow more and spend more hurry up our esteemed leaders rely on you to help them to get things in order again. Sigh over here in the Netherlands everything is fantastic and we have very smart and very esteemed leaders who are doing the right things to get us through the crises we are in such a great and fantastic condition. We will hardly notice the crises at all.

Fri, 11/16/2012 - 09:25 | 2987276 madcows
madcows's picture

yeah, it's tough to buy votes when you're taking away the money.

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