Recessions, Budget Deficits, And Austerity: A Comment On The U.S. And European Economies

Abstract

We have seen that both the U.S. and the European Union have experienced a serious recession in recent years. Some of the results of these economic difficulties include a rise in unemployment and an increase in budget deficits and national debts. This paper discusses the likely outcome of policies instituted by U.S. and European leaders to this economic situation.