nuckles87 on 26 April 2013
Well, no, true austerity is reducing government spending and raising taxes. Doesn't matter so much if your still running a deficit. Otherwise pretty much every usage of the word I've seen for the past five years has been wrong. That's what European governments have been practicing, and that's (sort of) what we've been practicing, and it's been attributed to reduced GDP and significantly higher unemployment by economists.
Taking money out of the economy isn't going to magically make the economy better. It's just going to shrink it. It's something you do in a time of prosperity.
