Sample Economics Paper on Austerity in the United Kingdom.

The United Kingdom's overall economic performance has seen to be relatively sluggish
and not moving as quickly as expected. This is often caused by a deteriorating number of
changes in numerous factors such as the employment sector, the country's position in Europe,
and the increase in people for those who work. As a result, all labor expenses have been
substantially affected, resulting in lower-than-usual Global Domestic Product figures ("Austerity
in the United Kingdom, 2020). Furthermore, a country's total performance, such as the United
Kingdom's, is influenced by the European Union's overall routine.
In recent years, a method of analyzing, evaluating, and make independent judgements has
been developed. As a result, it aided and contributed to the overall economic success. The
government was gathered with other legitimate ideas to develop an instant answer, such as when
interest rates were dismally decreasing to the point of becoming ineffectual. The austerity plan
came to the rescue by working with the government to evaluate the overall revenue of the
country and subsequently increasing the Value Added Tax to greater than 20%, with further
increases as they advanced. As a result, austerity played only a limited part in setting the
groundwork for and improving the United Kingdom's overall economic performance(Fetzer,
2019). Prior austerity measures attempted to be a major setback in the economy, however
underperformed owing to adverse circumstances, particularly as a country amongst countries in
Europe. There were also rising commodity prices as well as the emergence of industries
including the finance which were also productive.
All agree that previous austerity programs were beneficial. For instance, public
investment doubled general production, particularly in British infrastructure demonstrated via
enhanced great projects that were attainable. Nevertheless, austerity addressed the looming

financial problem in the United Kingdom. Furthermore, the existence of the currency of the
United Kingdom, comparable to the Eurozone, highlights the need to evade bankruptcy may be
hard to handle for long. Besides, the current austerity strategy is an illustration of a complete
policy of nation-building that is regarded for its involvement such as the country and the
economy’s vital areas to represent the people. Lowering public general expenditure to around
35% of GDP appears to benefit the recipients since there will be minimal spending, particularly
on government facilities and other useful services. Another way this will be accomplished is by
obtaining pensions of the public from various areas as an asset that will assist in managing the
population in the years ahead of service to the country.
In terms of future austerity, the groups concerned will need to explore and form a
blending coalition that will allow all groups to develop with innovative objectives and ideas for
how to carry out public ambitions. The goal is to wait for the merging groups' opinions to
achieve a balance in the budget process that will be viewed as assisting in the reduction of
government spending by at minimum 1.8 percent while addressing popular demands (Sowels,
2014). The arena in which the country may participate in making key choices regarding the
reinstatement of public investments that can be beneficial to the future of the country. This may
be accomplished by leveraging on investments in the energy, transportation, and housing sectors.
Because of the United Kingdom's history of poor record keeping, the policy must prepare and
manage with the smallest amount of acquisition and have the least amount of borrowing from the
public. Some programs will allow for the quick decline of the specified debts. As a result, the
costs of growth, employment, and investments will reduce
The tax that varies at any given point by fluctuating to high or low taxing between any
given times is also another problem. As a result, the policy behind it will assess the need to

decrease taxes by a significant amount in order to sustain the volatility in the area of investment
and manage all costs at hand. In these instances, for example, a lot of work leads to tax increase.
Plans are in place to ensure the sequence in which those taxes are spent in various sectors. But
the policy is required to identify all of the places from previous years where all of the taxes
appear to rise as viewed in each given year in to reaffirm all of the needs accessible to handle
such eventualities.
Ultimately, austerity policy is a set of economic principles in which the government is
viewed as a moderating influence through its implementation to limit public debt. In the United
Kingdom, austerity measures were established and applied in order to eliminate all existing
deficits that had resulted in unsustainable levels in the financial sector, culminating in a crisis.
For example, due of austerity measures, public employees and investors are now required to
participate in instances where they are forced to participate in redundancy threats. The programs
and policies of austerities have been essential in reduction of welfare spending, increased Value
Added Tax as well as highly lowered spending of the government on services and amenities

Austerity in the United Kingdom. (2020). Austerity, 47-74.
Fetzer, T. (2019, August 23). Did austerity in the UK lead to the Brexit crisis? Harvard Business
Review. Retrieved February 2, 2022, from
Sowels, N. (2014). The coalition’s economic policy of fiscal austerity and monetary
experimentation by the Bank of England. Observatoire de la société britannique, (15),