The point is that appropriate action can always be taken
when needed, and unemployment is
never necessary.
To elaborate a little bit: A monetarily sovereign government really only needs higher tax revenue to stave off demand-driven inflation. But in the case of demand-driven inflation, something has to be done anyway due to real constraints.
Now you might ask whether austerity now could help future real constraints in any way. The answer is typically no: austerity means that less is consumed today, but at the cost of less production today. Austerity does not cause stockpiles of real resources to be built for the future.
If you actually wanted to build real resources for the future (and such a plan would be dubious at best, because predicting future needs is tricky, especially in the face of changing technology), you would actually want to do the opposite of austerity: you would want to spend more now, in order to buy the real resources that are stored away in the stockpile.
It is only these real considerations that matter for a monetarily sovereign country. Monetary constraints only matter for countries that are not sovereign, e.g. the various members of the Euro area.
To elaborate a little bit: A monetarily sovereign government really only needs higher tax revenue to stave off demand-driven inflation. But in the case of demand-driven inflation, something has to be done anyway due to real constraints.
Now you might ask whether austerity now could help future real constraints in any way. The answer is typically no: austerity means that less is consumed today, but at the cost of less production today. Austerity does not cause stockpiles of real resources to be built for the future.
If you actually wanted to build real resources for the future (and such a plan would be dubious at best, because predicting future needs is tricky, especially in the face of changing technology), you would actually want to do the opposite of austerity: you would want to spend more now, in order to buy the real resources that are stored away in the stockpile.
It is only these real considerations that matter for a monetarily sovereign country. Monetary constraints only matter for countries that are not sovereign, e.g. the various members of the Euro area.