Austerity
Broad Definition: To eliminate Deficits
Occurs when debt is high, creates justification for it
Can be achieved by increasing taxes or decreasing spending
“belt tightening” analogy to households
taken out loan to buy home, can’t buy as much after
Almost always achieved by decreasing spending
Can even be present when deficits are increasing
Narrow Definition: When deficits are reduced by decreasing spending as well as lowering taxes. These reductions are often done to the
Reduction of the welfare state
Often involves on lowering taxes
Doesn’t just hinge on eliminating deficits, as lowering taxes increases deficits
Suggests that its real goal is the shrinking of the welfare state
The protective role of the state that emerged after the Great Depression in many nations
Many were out of work
Governments tried to create policies where people would be protective from economic collapse
Employment insurance
Social assistance
Universal public health
Universal public education
point of welfare state
In austerity, these points are usually first to be cut to lower taxes and increase income of the government
Distributional Consequences of Austerity
Cuts and Austerity would impact poor people at a much higher rate than rich people
(Marxist Lineage) Disadvantaged people who earn money from wages are have less power compared to those who earn their money from profits (owners of businesses, etc)
economic system is one of inequality
Had to bail out many of their financial institutions, were going to go bankrupt
Europe handed them a fuck ton of money to bail
Europe now had a huge deficit
healthcare, foreign aid, social housing, income supports for the poor were all cut
uk had a long history that had housing run by gov agencies
cut job search services
England did very big cuts to the healthcare system, used to be seen as the world model
The Body Economic:
hundred of thousands of people died early deaths because of the cuts made by the uk government
living in poor housing, not affording good meals
Broad Definition: To eliminate Deficits
Occurs when debt is high, creates justification for it
Can be achieved by increasing taxes or decreasing spending
“belt tightening” analogy to households
taken out loan to buy home, can’t buy as much after
Almost always achieved by decreasing spending
Can even be present when deficits are increasing
Narrow Definition: When deficits are reduced by decreasing spending as well as lowering taxes. These reductions are often done to the
Reduction of the welfare state
Often involves on lowering taxes
Doesn’t just hinge on eliminating deficits, as lowering taxes increases deficits
Suggests that its real goal is the shrinking of the welfare state
The protective role of the state that emerged after the Great Depression in many nations
Many were out of work
Governments tried to create policies where people would be protective from economic collapse
Employment insurance
Social assistance
Universal public health
Universal public education
point of welfare state
In austerity, these points are usually first to be cut to lower taxes and increase income of the government
Distributional Consequences of Austerity
Cuts and Austerity would impact poor people at a much higher rate than rich people
(Marxist Lineage) Disadvantaged people who earn money from wages are have less power compared to those who earn their money from profits (owners of businesses, etc)
economic system is one of inequality
Had to bail out many of their financial institutions, were going to go bankrupt
Europe handed them a fuck ton of money to bail
Europe now had a huge deficit
healthcare, foreign aid, social housing, income supports for the poor were all cut
uk had a long history that had housing run by gov agencies
cut job search services
England did very big cuts to the healthcare system, used to be seen as the world model
The Body Economic:
hundred of thousands of people died early deaths because of the cuts made by the uk government
living in poor housing, not affording good meals
