Main article: Keynesian economics Red: corporate profits after tax and inventory valuation adjustment. Blue: nonresidential fixed investment, both as fractions of U.S. GDP, 1989–2012. Pattison, Louis (25 April 2014). "Sleaford Mods – 'Divide And Exit' ". NME . Retrieved 15 August 2015. According to a 2020 study, austerity does not pay off in terms of reducing the default premium in situations of severe fiscal stress. Rather, austerity increases the default premium. However, in situations of low fiscal stress, austerity does reduce the default premium. The study also found that increases in government consumption had no substantial impact on the default premium. [39]

In many countries, little is known about the size of multipliers, as data availability limits the scope for empirical research. Austerity measures are typically pursued if there is a threat that a government cannot honour its debt obligations. This may occur when a government has borrowed in currencies that it has no right to issue, for example a South American country that borrows in US Dollars. It may also occur if a country uses the currency of an independent central bank that is legally restricted from buying government debt, for example in the Eurozone. Across an economy, one person's spending is another person's income. In other words, if everyone is trying to reduce their spending, the economy can be trapped in what economists call the paradox of thrift, worsening the recession as GDP falls. In the past this has been offset by encouraging consumerism to rely on debt, but after the 2008 crisis, this is looking like a less and less viable option for sustainable economics.

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Sleaford Mods: "I apologise for making fun of NME in our song" ". Nme.com. 18 May 2020 . Retrieved 7 December 2021.

The band featured in two documentary films, Sleaford Mods: Invisible Britain, released in 2015 and Bunch of Kunst. A Film About Sleaford Mods, released in 2017. [ citation needed] Bell, John. "Sleaford Mods - Rescue Rooms, Nottingham 27/01/15". The Line of Best Fit . Retrieved 2 May 2016. where τ {\displaystyle \tau } is a baseline marginal tax-and-transfer rate. Also, we need to take account of the economy's long-run growth rate g {\displaystyle g} , as a steady economic growth rate may reduce its debt-to-GDP ratio. Then we can see that an expansionary fiscal policy is self-financing: [155] ( r − g ) d D − τ d Y = ( r − g ) ( 1 − μ τ ) d G − τ η μ d G {\displaystyle (r-g)dD-\tau dY=(r-g)(1-\mu \tau )dG-\tau \eta \mu dG} ∂ B ∂ G = ( r − g ) ( 1 − μ τ ) − τ η μ , {\displaystyle {\frac {\partial B}{\partial G}}=(r-g)(1-\mu \tau )-\tau \eta \mu \;,}Balzer, Jens (11 May 2014). "Sleaford Mods Sie haben sehr schlechte Laune". Frankfurter Rundschau (in German) . Retrieved 23 September 2014.

Around 2011, the IMF started issuing guidance suggesting that austerity could be harmful when applied without regard to an economy's underlying fundamentals. [56] In October 2012, the IMF announced that its forecasts for countries that implemented austerity programs have been consistently overoptimistic, suggesting that tax hikes and spending cuts have been doing more damage than expected and that countries that implemented fiscal stimulus, such as Germany and Austria, did better than expected. [24] The IMF reported that this was due to fiscal multipliers that were considerably larger than expected: for example, the IMF estimated that fiscal multipliers based on data from 28 countries ranged between 0.9 and 1.7. In other words, a 1% GDP fiscal consolidation (i.e., austerity) would reduce GDP between 0.9% and 1.7%, thus inflicting far more economic damage than the 0.5 previously estimated in IMF forecasts. [25]In many situations, austerity programs are implemented by countries that were previously under dictatorial regimes, leading to criticism that citizens are forced to repay the debts of their oppressors. [95] [96] [97] A typical goal of austerity is to reduce the annual budget deficit without sacrificing growth. Over time, this may reduce the overall debt burden, often measured as the ratio of public debt to GDP. [40] Relationship between fiscal tightening (austerity) in Eurozone countries with their GDP growth rate, 2008–12 [41] Eurozone [ edit ] France — 1926–1929, 1932, [129] 1934-1936, [130] 1938–1940, [131] 1958, 1976–1981, 1982–1986, 1995, 2010, 2014 [132]

So why is it your Album Of The Year?", you scream? Because some of us are obstinate, stubborn and true to what we believe, regardless of whether it may be palatable to the masses (or even to the talented, active musicians that earn a small crust here in t'Towers). It's only one of more than 50 great albums released this year, but it's arguably the most genuinely "punk", "urban" and "street" UK recording out of the whole bunch. 'Austerity Dogs' is the most furious blast of noxious whiteboy thug rap, hilarious social commentary and sparse, brittle DIY electro-punk you'll hear in 2013, and possibly until this Midlands duo see fit to write a proper follow-up. According to the CIA World Factbook, Greece decreased its budget deficit from 10.4% of GDP in 2010 to 9.6% in 2011. Iceland, Italy, Ireland, Portugal, France, and Spain also decreased their budget deficits from 2010 to 2011 relative to GDP [42] [43] but the austerity policy of the Eurozone achieves not only the reduction of budget deficits. The goal of economic consolidation influences the future development of the European social model. Harris, John (18 March 2015). "Grammar Wanker: Sleaford Mods 2007‑2014 by Jason Williamson – review' ". The Guardian . Retrieved 28 December 2020. It's in the lyrics – and their delivery – that this album really stands out, though. In her book Revolting Subjects, the sociologist Imogen Tyler shows how tabloid hate figures (the poor, immigrants, Roma, single mums, etc) aren't simply 'abject' but are produced as such: forced to live in squalor and then, as that squalor takes effect, demonised by the press and bourgeois small-mindedness/self-interest. Sleaford Mods know this too: on 'Urine Mate', frontman Jason Williamson tells us about seeing one of Nottingham's better known alcoholics putting his bin out and "stinking of urine", whilst people from Mapperley Park (a fairly salubrious area) "point and laugh". Then, on 'My Jampandy', he tells how "cuts make people stink", whilst 'Fizzy' speaks of "work[ing] my dreams off for two bits of ravioli and a warm bottle of Smirnoff under a manager that doesn't have a clue."In 2009, 2010, and 2011, workers and students in Greece and other European countries demonstrated against cuts to pensions, public services, and education spending as a result of government austerity measures. [98] [99] Much of the acceptance of austerity in the general public has centred on the way debate has been framed, and relates to an issue with representative democracy; since the public do not have widely available access to the latest economic research, which is highly critical of economic retrenchment in times of crisis, the public must rely on which politician sounds most plausible. [153] This can unfortunately lead to authoritative leaders pursuing policies which make little, if any, economic sense. Indeed, so pitch-perfect are Sleaford Mods in their vitriolic take-down of austerity Britain that part of me worries that's it all just some satirical prank, and that when 'Austerity Dogs' hits the end-of-year best-of lists (as it will) Williamson and Fearn will be found "laughing their tits off" with Mumford and Sons whilst blowing coke up each other's bumholes or something. Economist Martin Wolf analyzed the relationship between cumulative GDP growth in 2008 to 2012 and total reduction in budget deficits due to austerity policies in several European countries during April 2012 (see chart at right). He concluded, "In all, there is no evidence here that large fiscal contractions budget deficit reductions bring benefits to confidence and growth that offset the direct effects of the contractions. They bring exactly what one would expect: small contractions bring recessions and big contractions bring depressions." Policy choices had little to do with these deficit increases. This makes austerity measures counterproductive. Wolf explained that government fiscal balance is one of three major financial sectoral balances in a country's economy, along with the foreign financial sector (capital account) and the private financial sector.