Austerity measures can do more harm than good from "summary" of The Deficit Myth by Stephanie Kelton
Austerity measures are often seen as necessary steps to address budget deficits and control government spending. The underlying belief is that cutting back on public services and social programs will help restore fiscal balance and promote economic growth. However, the reality is more complex than this simplistic view suggests. Austerity measures can actually do more harm than good, especially during times of economic downturns when private sector spending is weak. When the government implements austerity measures, it essentially takes money out of the economy by reducing its own spending. This can have a negative ripple effect, as the decrease in government expenditures can lead to a decrease in overall demand, which in turn can lead to job losses and wage cuts. As a result, economic growth may slow down or even contract, making it harder for the government to generate revenue and reduce its defic...
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