Interesting Guardian defintion

Glossary
Austerity The belief that by cutting spending and raising taxes you can eliminate government borrowing

Crowding out The belief that the public sector sucks up finances and workers that could otherwise go to businesses

Debt The total sum of all the borrowing taken by the state over the years

Deficit The overspend racked up by the government when it spends more than it receives in taxes

All of those being true of course.

3 comments on “Interesting Guardian defintion

  1. “Austerity The belief that by cutting spending and raising taxes you can eliminate government borrowing”

    No it’s not:
    Firstly it’s not about eliminating borrowing: it’s about eliminating the _deficit_

    Once you have corrected that, then it’s not a belief either.

  2. Ah sorry – they are probably just being sloppy: by borrowing, they mean the flow not the stock.

  3. Cutting spending relative to the (inflation+GDP growth) indicator doesn’t seem austere to me. UK govt is still spending more than it has ever had coming in.
    I think some actual austerity is in order, then we can define it when we’ve lived through it.

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