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Monday, 6 May 2013

Unit 2 and Unit 4: Impact of Austerity



This is not a scene from a country at war.

The Jan 2013 paper was all about the impact of austerity measures given weak economic growth. As the case study highlighted there have been job cuts in the public sector and cuts in other areas of public spending such as education.

To say that the impact of public sector job cuts is solely unemployment is not enough! What is the impact of unemployment?! Lower living standards, further falls in consumer confidence, negative multiplier etc. 

The UK is not alone in implementing austerity... Portugal, Greece, Spain... All have seen job cuts. What is the impact? Public anger, strikes and even violence.. Trade Unions are much stronger in continental Europe which is why perhaps the reaction has been stronger. Could this happen in the UK? When you are writing answers to these 30 mark questions context is important. What has happened in the real world. Not just your text book.


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