Austerity – a term that had been floating around the financial circles regarding country bailouts in respect the “EURO” is a term used to describe financial reform among countries who are in financial trouble with large deficit spending and a high socialistic approach to governing its people. According to Wikepedia austerity is defined as “a policy of deficit-cutting, lower spending, and a reduction in the amount of benefits and public services provided. Austerity policies are often used by governments to reduce their deficit spending while sometimes coupled with increases in taxes to pay back creditors to reduce debt.”
Recent talks of Austerity caused large riots in Greece and other countries as decisions regarding education, taxes and benefits cutting were not easy to accept. Most people are not elastic to change and their way of life was dependent on the socialistic approach. In Great Britain for example the state tuition was increased 3 fold for college and university attendance. Obviously a hard hit for students. In Greece they increased the retirement age and reduced retirement benefits. Any change deemed as extreme and not agreed upon policy comes with much pain and agony. So when you here the mention of Austerity; be prepared for the people of said countries to not take it lightly.
By Daniel Araujo
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