Austerity during recession deepens downturns and worsens state finances

Evidence

The austerity cure is often worse than the disease, however, as most of the time it exacerbates the downturn, further shrinking the government’s resources while incentivizing new cuts to rebalance its budget. — Arthur Borriello and Anton Jäger, The Populist Moment, 108

Categorization

• XREF: connects to: Austerity became self-defeating because it worsened the deficits it claimed to fix — Mark Blyth, Austerity: The History of a Dangerous…, 516; Austerity is voluntary deflation achieved by cutting state budgets to restore competitiveness — Mark Blyth, Austerity: The History of a Dangerous…, 25; Austerity cuts raised the debt-to-GDP ratios of Eurozone crisis states. — Mark Blyth, Austerity: The History of a Dangerous…, 30 (+2 more)

Broader Connections

• Austerity became self-defeating because it worsened the deficits it claimed to fix #corroborates (0.92) — Mark Blyth, Austerity, 516
• Austerity cuts raised the debt-to-GDP ratios of Eurozone crisis states. #corroborates (0.88) — Mark Blyth, Austerity, 30
• Announced austerity cuts signaled lower growth and deflated markets instead of calming them. #qualifies (0.85) — Mark Blyth, Austerity, 28
• Austerity is voluntary deflation achieved by cutting state budgets to restore competitiveness #qualifies (0.80) — Mark Blyth, Austerity, 25