World macro-economics, apparently, is now easy to understand. You either favor “growth” or “austerity.” As with almost all official economic concepts, these terms do not refer to actual activities. So let us be clear.
“Austerity,” finding its roots in monastic and religious behavior, means cutting government spending and reducing debt. Austerity leads to less support for education and other social services, smaller government payroll and paying off bond holders as soon as possible. It is controlled, orderly and disciplined.
Growth means increasing government services by borrowing money and paying off bond holders now and even more in the future. It is unpredictable and hard to manage.
It’s clear who the winners are under each choice. But one group wins either way. If we did not think about financial matters in such a barren either-or manner, might we find ways to make more winners?