Austerity measures – tax hikes, cuts in budget spending – dampen growth. That, in turn, makes it harder to meet deficit and debt targets, forcing governments to implement more austerity measures, which further hit growth, and so on and so on
the above is taken from an article
my question is below
may i know why would austerity measures make it harder to meet debt targets? since the measures itself reduces spending debt. Is it more of a austerity measures becoming a short term effect where as in the long term it dampens growth?
the above is taken from an article
my question is below
may i know why would austerity measures make it harder to meet debt targets? since the measures itself reduces spending debt. Is it more of a austerity measures becoming a short term effect where as in the long term it dampens growth?