Congress should prefer direct economic stimulus to austerity.

My partner and I negate the Resolved: Congress should prefer direct economic stimulus to austerity. I will start with a proper framework for today’s debate. Here are some definitions: Prefer: to choose one over another Direct Economic Stimulus: According to Croft Communications, it is an investment designed to jump start something such as more jobs, more consumer confidence, more investment, and more growth. Austerity: According to Financial Times Lexicon, it is an official action taken by a government in order to reduce the amount of money that is spent or the amount that the people spend and reallocating taxes. The standard, or weighing mechanism for today’s debate is the net benefits. In this debate, the affirmative will have to prove that stimulus achieves net benefits better than austerity does. If not fulfilled, the negative shall win this debate. Contention 1: Austerity improves economic growthAusterity has worked in many countries and it has improved their economy. It has created a stabilized economy. According to Michael Tanner, a senior fellow at the Cato institute, states, Estonia dramatically improved by undertaking austerity measures and was able to reduce its unemployment rate to 7.6%. In addition to that, according to Michael Witte, a senior research fellow at the Sir Arthur Lewis Institute of Social and Economic Studies, “Our political and business leaders can and must chart a path of economic recovery and social stability with the help of austerity.” Also, According to Veronique de Rugy, a senior research fellow at the Mercatus Center at George Mason University, states, “Sweden’s growth rate is 4.9% because it uses austerity while ours is 1.9%. Sweden’s economic growth has, of late, trumped every other European country’s.” These economies are so different, and makes austerity work in any country so it will work in America. Additionally, Economist William Hosinski argues that economic growth relies on investment which is essentially the forgoing of consumption as well as a working price mechanism. Government spending distorts prices and causes its externalities tthat outweigh its short term benefits. The Impact is that austerity improves economic growth which stabilizes our economy.Contention 2: Austerity decreases the unemployment rate. This helps make a stable and strong economy by creating consumer confidence. Austerity cuts spending. This saves money and makes corporations open up jobs. The Business times reports that, “In Canada, the unemployment rate is 7.6% as the result of Austerity measures. According to Richard Epstein, “Sweden’s unemployment rate went from 9.1% to 7.8% because the used austerity.” This was all caused because of austerity plans made by these countries. These countries are so different which makes austerity versatile, so it will work in any country with the right policies. If more people have jobs, more people will spend which creates a better economy. Contention 3: Austerity lowers debt. Austerity plans lower debts which helps stabilize the economy. Debt is bad since if we don’t pay it off it can create problems with international relations. Brian Doherty, senior editor at Reason magazine, states on February 24, 2012, “US debt to GDP hit 101%. This will become a huge problem since if we don’t pay off the debt we owe internationally, we will not be trusted to be invested in and it will cause dollar dumping.” Austerity decrease debt by cutting down spending and increasing tax rates to pay back the debt, then the government will pay back the taxes when the economy is better.. Stimulus just spends and decrease tax rates which increase debt. Estonia is running a budget surplus. Its national debt is 6 percent of GDP. By comparison, Greece's is 159 percent of GDP. Ours is 102 percent. Also, Latvia’s budget deficit will be just 1.2 percent of GDP, and the national debt is just 37 percent of GDP and declining. Sweden’s debt decreased from 42.8% of the G.D.P to 39.7% of the G.D.P. This was caused because of austerity. If it has worked in such versatile countries, it will work in America with the right policies for sure. Less debt creates a better economy by reducing how much you owe and increase the G.D.P and keeping strong international relationsJudge, if you want America to remain in its current state, vote for our opponents. But, if you want America to have a strong and stable economy, I cannot see anything but a negative ballot.