Social solidarity is clearly highly desirable during a period of severe economic and fiscal distress. Accordingly, it is important that the government works out a fiscal adjustment programme that is rigorous but still perceived by the general electorate as distributing the burden as fairly as possible. Of course, fairness is in the eye of the beholder to some extent but a primary political objective should be to successfully achieve fiscal stabilisation while avoiding social disruption that is now evident in some other European countries. See this article in The Times (London) on the upheaval in Iceland and Greece.
3 replies on “Social Harmony and Fiscal Reform”
I think it’s impossible to overstate the importance of this.
I agree with Kevin on the importance of this.
Is there a difference with 1968 when there was at least some prosperity as long as you new your place so to speak. Now even if you dont want to push social change you are confronted with it; even if you were the most conservative of persons.
Thats a bit more flammable IMHO.
Political Economics back with a bang I think.
Distributional effects of the fiscal consolidation programme should be considered very carefully. It is important that the government announces a fiscal consolidation programme that includes both expenditure cuts and tax increases. While expenditure cuts will hit hard the low income group the burden of tax increases will be paid mostly by the high income group.