Economics of Austerity

The economics of austerity and its applications in devising government austerity policy remain among the most oversold and misused approaches so far. Missing in action are the concerns of socioeconomic sustainability and economic sustainability in addition to some debt sustainability actions. The narrow usage of neoclassical economics accounts for a large element of advocacy of large scale government austerity, and warrants a comprehensive revision of relevant approaches for win-win rather than lose-lose proposals.