An austerity program for Thailand?
Posted July 9, 2010on:
Reference: The world turns right Thailand turns left, Bangkok Post, July 9, 2010
It is argued that since budget deficits and looming sovereign debt crises in Britain, Greece, and elsewhere in the EU have driven these nations into austerity programs to cut spending as a way of balancing the budget, Thailand should follow follow suit with an austerity program of its own instead of increasing government spending with new populist programs for free train tickets and such (The world turns right Thailand turns left, Bangkok Post, July 9, 2010).
Austerity programs are not like a fashion trend to be followed as the new “in” thing to do. They are made necessary by harsh economic realities such as unsustainable budget deficits, an excessive amount of sovereign debt, and falling bond ratings. If an austerity program is prescribed for Thailand the argument must be supported with the relevant economic data for Thailand, and not simply with the observation that austerity programs have become fashionable in the West.