Listen Up, Budget Cutters. Austerity Can Lead to Blood on the Streets, Even in America

[xchrom]

http://www.alternet.org/economy/austerity-and-riots



***SNIP

Hard times + austerity = chaos

Ponticelli and Voth found that the countries in their European study have an average of 1.5 incidents of civil unrest per year. But during times where the government is implementing austerity policies, that number goes up. When those cuts reach 1 percent or more of GDP, the number of events goes up by a third compared to periods of expanding budgets.

What’s more, the number of disturbances rises as cuts intensify. “Once austerity measures involve expenditure reductions by 5% or more,” write Ponticelli and Voth, “there are more than 3 events per year and country -- twice as many as in times of expenditure increases.”

In other words, economic shocks alone are not enough to cause people to flip out. It’s the way governments respond to them that sets the stage for blood in the streets.

After looking at Europe, the authors collected data on South America, and found the same connection: When governments pursue budgets cuts during economic downturns, all hell often breaks loose. “From Argentina in 2001 to Greece in 2010-11,” note the authors, “austerity measures have often created a wave of violent protests and massive civil unrest.”

[Turbineguy]

1. No problem in the U.S.

We are heavily armed.

[xchrom]

2. kick