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What does an Austerity Program do?

What's the Nature of an Austerity Program?

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What is an Austerity Program?

• It is a policy implemented by a government which involves limiting the budget that it has for social services and programs. Thus, while this program is being implemented, the government would not tolerate any unnecessary spending done by its officials.
• It is being applied by officials when the government can’t seem to stop from spending too much of its own money or when the country is already starting to drown because of its debts. It can also be applied if the country has just recently concluded a very expensive war.
• It is being implemented due to some officials’ greed for money, political motives or simply to neutralize the country’s economy.
• It can also be applied due to the demand of the creditors in the country. They are doing this for the purpose of getting their money back. A clever strategy, indeed.
• Following the same principle, huge companies implement an austerity program of their own for them to avail of their bank loans or government bailouts
• It simply helps most corporations and organizations survive during an extreme financial crisis even if it entails sacrifice for other people.
• It is treated as a threat by most economists rather than the act that would save the whole country. It is because a military coup or chaos among the country’s citizens can certainly result from an extended austerity program
• The poor and the working class of the country that implements this policy are the people who will be greatly affected by the cutbacks that their government is about to make.
• To put things in a simpler context, an austerity program makes the citizens of a certain country tighten their belts and sacrifice until the condition of their nation’s economy gets back to normal.

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