Topics
Fiscal Austerity
Fiscal austerity is a policy approach that involves reducing government spending and/or increasing taxes in order to reduce budget deficits and debt. The goal of fiscal austerity is to improve the financial health of a government by reducing its reliance on borrowing and stabilizing its debt-to-GDP ratio.
Fiscal austerity is typically implemented during times of economic crisis or recession, when government debt levels have become unsustainable and there is a need to restore confidence in the economy. However, the implementation of fiscal austerity policies can have negative effects on economic growth and can lead to social and political unrest. This is because austerity measures typically involve cuts to public services, reductions in government subsidies, and/or increases in taxes, which can hurt households and businesses that rely on government spending.
Critics of fiscal austerity argue that it can lead to a vicious cycle of lower economic growth, higher unemployment, and lower tax revenues, which can ultimately worsen the government's fiscal position. Advocates of fiscal austerity argue that it is necessary to avoid the long-term negative effects of high government debt, which can lead to inflation, currency devaluation, and financial instability.
Overall, the debate over the effectiveness of fiscal austerity policies remains controversial, with proponents and critics offering competing views on their impact on economic growth, employment, and social welfare.
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The Looming UK Debt Crisis: A Challenge for Future Generations
12th September 2024
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What is meant by a balanced budget?
Study Notes
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What is meant by fiscal austerity?
Study Notes
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Fiscal Austerity
Topic Videos
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Fiscal Policy - Explaining Automatic Stabilisers
Topic Videos
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Fiscal Policy - Crowding Out
Study Notes
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UK Economy - New Revision Videos on Growth and Monetary Policy
25th April 2023
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Kahoot and Quizlet Resources on Fiscal Policy
25th April 2023
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RIP Trussonomics - The Chancellor's Emergency Fiscal Statement
17th October 2022
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The Size of UK Government Debt
2nd August 2022
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What are national insurance contributions?
23rd February 2022
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Risks to inequality from premature fiscal austerity
3rd June 2021
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Impact of Brexit on finances
28th June 2016
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Intensify austerity to boost the economy
13th July 2016
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Living standards, Poverty and Inequality in the UK in 2016
21st July 2016
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Brexit - Should the UK Government abandon austerity?
31st August 2016
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Stiglitz on Seven Reforms to Save the Euro
2nd September 2016
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Eighty Years on from the General Theory - Keynes Returns
11th December 2016
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Update on the Greek Economic Crisis
8th February 2017
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UK tax burden set to be the highest in 30 years
9th February 2017
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Greece - Economic Growth and Development
Study Notes
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Monetary and Fiscal Policy Revision Quiz
Quizzes & Activities
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Macro Revision - Aspects of Fiscal Policy
Teaching PowerPoints
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Prospects for the Greek Economy
Study Notes
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Greek Economy: Deficit, Debt and Austerity
Topic Videos
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The 2021 Budget - Sunak faces tough fiscal challenges
1st March 2021
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Fiscal Policy: How government spending in the UK is split
29th November 2020
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Evaluating the effects of rising national debt
Topic Videos
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Evaluating Fiscal Policy (Online Lesson)
Online Lessons
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Fiscal Policy: The National Debt
Topic Videos
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Economics of a Budget (Fiscal) Surplus
Topic Videos
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UK Economy Update 2019: Monetary and Fiscal Policy
Topic Videos
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Fiscal Policy (Revision Presentation)
Teaching PowerPoints
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Fiscal Policy - Government Borrowing
Study Notes
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Fiscal Policy - Causes of a Budget Deficit
Study Notes
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300 Years of Government Spending
29th May 2018
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Fiscal Policy in the UK - Key Facts in 2018
Topic Videos
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Fiscal Austerity (Chain of Analysis)
Exam Support
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Test 10: A Level Economics: MCQ Revision on Fiscal Policy
Practice Exam Questions
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Crowding-Out
Topic Videos
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IMF warns that era of UK austerity is not yet over
24th November 2017
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The Dangers of Fiscal Policy
5th October 2017
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Austerity fatigue sets in
17th July 2017
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Social and Economic Austerity
23rd June 2017
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Can cutting public spending expand the economy?
2nd June 2016
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Fiscal Policy Update: UK Government Spending 2015-16
24th March 2016
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Is fiscal austerity a drag on growth?
24th February 2016
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Student Essay: Evaluating Fiscal Austerity in the UK
18th February 2016
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Economics at the Movies - Robin Hood and tax
26th November 2015
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The regressive effects of austerity?
17th November 2014
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Is George Osborne a closest Keynesian?
24th December 2014
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John Van Reenen on Austerity
11th March 2015
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Key Decisions in the July 2015 Budget
9th July 2015
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Cutting spending can be expansionary
12th August 2015