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Well-known CRM analyst and thought leader, Denis has made contributions to our thinking about cloud computing, CRM, social media, analytics and mobility. He runs the Beagle Research Group, LLC and is co-founder and managing principal of The Bullpen Group. He frequently contributes to this and other outlets.

5 responses to “Beginning to End the Great Recession”

  1. JasonC

    I wonder….would austerity measures work to save and stimulate these economies…IF it were actually tried? To this point it has not been tried. Every major European government is spending more than it was 4 years ago.

  2. Denis Pombriant

    Not tried? See Spain, Greece, Portugal, Italy and Ireland. Yes, perhaps many are spending more but that’s because austerity kicks people out of work and puts them on the dole requiring social safety nets to kick in and without sufficient tax receipts, they borrow. The dole is nice better than nothing but not sufficient to pull a country out of the tailspin.

  3. JasonC

    How far do you let your debt (as a percentage of GDP) get out of hand before there is simply no pulling out of that tailspin, no matter what you do? How much is sufficient to pull a country out of a tailspin? In the US we spend about a $1 trillion and have added $5+ trillion to the debt in just a few years. Surely the economy should be growing in the mid to high single digits by now, right? Or does it take $3 trillion in stimulus and $10 trillion added to the debt? Would that do it?

    There have been no drastic cuts in any of the above countries, and where there were any cuts at all there were also tax increases. The press talks as though there have been draconian cuts when there have not been, points to the fact that the economies are not recovering (from the cuts that have not happened), and suggests that as evidence that reducing spending and attempting to balance budgets is simply no way to fix a budget crisis. At some point we’ll all have to decide if we’re grown up enough to accept short term pain in an attempt to keep from driving over the cliff, or if the real answer is to just give to crank up the radio, put our foot to the floor, and hope for the best.

  4. balaji

    Denis,

    Thanks a lot for great article.

    Let’s say a govt. go for more spending and ends up in deficits, then how it will overcome the fiscal deficit position? This is like infusing money in market in way of spending.

    1) What will be the outcome of infusing such money? Inflation? any other?
    2) If Keynesian are so clear in achieving this, they why Austerian don’t agree to them? What is Austerians’ strong argument?

    Thanks,

  5. JasonC

    The false argument presented by Keynesian’s is that one cannot be for both Austerity and for growth. Those in favor of governments getting leaner and showing some fiscal responsibility (or even just a bit of sanity) are still in favor of growth, but growth driven by the private sector…which is much better at it, more efficient at it, and is by individuals investing their own money vs. politicians investing ours.

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