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A Journal opinion and address an economic issue of current interest to Wall Street Journal readers - Article Example

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The economic recession that rocked the world especially with the effects being deeply felt in the western country resulted in increase of these countries debt deficits. The countries were spending more than they had increasing their overall debts. In some cases, the amount…
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A Journal opinion article and address an economic issue of current interest to Wall Street Journal readers
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A Journal opinion and address an economic issue of current interest to Wall Street Journal readers

Download file to see previous pages... This has been faced by anti- austerity protests in these countries as common citizens suffer from the harsh effects of these measures (Navarro 345). This has left people wondering whether the austerity measures are really the way to go about the debts or whether does it just escalate the problem.
Austerity measures were instituted in order to make it possible for the economy to recover in the long run. This comes with a major price: reductions of government spending results in increase in current unemployment rates, reduction in personal income and lowers the standard of living of the people. This is done with the hope that when the governments are able to overcome the debt problem and boost the economy, it will thus be possible to create more jobs and improve the standard of living of the people.
The measures have been seen to work in some countries such as in Greece which has been able to achieve spending cuts of about 53% in the first half of this year. Although these measures may be seen to be working now in reducing spending their questions whether it will be possible for the countries to recover from the effect of these measures in the longrun. Experts say that the western economies have reached their peak of growth (Lynn, 345). If this is true, then it means that the economies are now on the down slope and it would not be possible for them to get back to the top. This means that the austerity measures would only make the living standards of the citizens of these countries deteriorate without any hopes for recovery. Take for instance the Greek strict measures that they have taken in the recent past. The Greek government has now announced that there will be no Christmas celebrations in this country (Anon, 230). This is based on the fact that peoples spending increases in times of celebration as people spend more on clothes, food and gifts rising the normal spending to ...Download file to see next pagesRead More
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