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An causal argument - Essay Example

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Greece for example has been hit by the worst dept crisis in history and this has caused major riots where citizens are feeling the hardships and…
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An causal argument
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Download file to see previous pages Austerity measures are steps that are taken to reduce government spending and induce more funding for development projects. These include cutting employment budgets, streamlining important sectors such as reducing funding of the health centers to allow people to pay for such services directly, and the overall reduction of government spending on recurrent expenditures and concentrate the same on development expenditure aimed at stimulating the economic development. Currently, there are divided views concerning implementation of austerity measures.
There are some analysts who view implementation of austerity measures as the best way through which economic depressions can be solved. The IMF and World Bank are some of those who advocate for austerity measures in such economies (Chiranga, 1).On the other hand, there are those who vehemently oppose any decision regarding implementing of the austerity measures in these economies, and these include social groups and employee rights activists. It would be important to understand the effects of austerity measures in an economy to better make an informed decision regarding the austerity measures. These measures lead to government cut on spending in the sectors mentioned above, and this may lead to increased unemployment. Economic depression also results when the spending by individuals and private sector has depreciated meaning that cash for development and goods consumption in the market gradually decreases.
Currently Greece has been grappling with a serious economic depression that resulted to massive demonstrations in the country. Greece has been living beyond its means even before joining the Euro, and the huge debt that has accumulated has resulted to a serious economic strain (BBC News, 2011). The Greek government after joining the Euro adopted a lavish life where the government went on a spending spree and borrowed heavily from the financial lenders (BBC News, 2011). The public ...Download file to see next pagesRead More
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