Politics & Government
The Politics of Fiscal Austerity and Social Spending Cuts
Quick fact
Research on the 'paradox of austerity' shows that cutting government spending during a recession can actually increase national debt relative to GDP, because the resulting economic contraction reduces tax revenues and forces higher welfare payments.
Why this is interesting
You've heard politicians promise to 'tighten our belts' during hard times, but why do these policies so often lead to angry protests and lost elections?