The era of austerity

Abstract

Austerity is a permanent policy through which a government tries to cut enough aggregate domestic spending so as to adjust the economy to the so-called market laws. It is proved that what is really at stake in austerity programs is the ability for a government to control de financial markets. It is shown that austerity is guilty of the growth of unemployment, and of the long run the quasi stagnation of the economy. It is also responsible for the increasing destabilization of financial markets.