Why is the British Government pursuing a policy of austerity while the Essay

Why is the British Government pursuing a policy of austerity while the economy is not growing - Essay pillowcaseThe failure strategies and policies include the judicature opting to greatly cut down on the budgets of some of its departments to as low as thirty percent (Barrell and Liadze, 2009, p. 208). The Government had assiduous the austerity policies and hoped that it will greatly check on the budget deficit to minimum level of zero percent by the end of that financial year. This was likewise considered as a move by the government to boost its economic status and assist in paying off its public debt. Despite the in a higher place measures, the budget deficit of Britain has remained at an alarming rate and with the impact beingness felt most by the citizens following the increased recessions (Barrell and Liadze, 2009, p. 207) Pressure in presently mounting on the government to make sense up with working solutions as well as cut down on the credit ratings. The austerity com e up failed to meet its intended role of certifying things beyond reasonable doubt thus resulting to a huge set endure in the economic development of Britain. The Government of Britain is being accused of simply trying to experiment how efficient the austerity approach can be to its economy (Barrell, Holland, and Hurst, 2012, p. 933).This experiment has led the Britain citizens to live in notion for a long period of time.. From the look of things with regards to Britain economy, it is most likely that the austerity policies will not be easily implemented. Economists have come out strongly explaining that measures like cutting down on government expenditure may in the long run reduce the economic output largely, tax revenues to decrease, and outlay on benefits to increase (Barrell and Liadze, 2009, p. 207). This however takes time and may end up resulting in an increase in the budget deficit. The government had intended to win back the favor of investors and businessmen by employi ng the austerity strategy. The effort to try and salvage the economic situation following the implementation of austerity policies has resulted to a big combat by the Bank of England to try slash investment spending (Delong and Summers, 2012, p. 78). This measure has however remained decimal and depressed. The government has also blamed the Eurozone for being its biggest business partners further in has don e nothing to help it with the issue of recession. The government of Britain may try resolving this recession issue by loosening its financial policy (Delong and Summers, 2012, p. 78). Despite such positive advice, the government has remained adamant and has continued to propagate the pre-Keynesian economics. This approach has resulted in some positive changes in the countrys fiscal policy but most people have not yet felt the fruits of his efforts and opt for better contribution. Back in 2009, the government had forecasted that come 2013, the deficit would have gone down by 3. 5 per cent of G.D.P. With time, the forecast has proven to have been too optimistic (Delong and Summers, 2012, p. 78). Despite the government coming up with measures to reduce economic budget deficit as well as government spending, it has not yet fully implemented these measures as it keeps on postponing them with the in style(p) future date being put at them forward until 2016 to 2017 (Fatas, 2012, p. 78). The debt-to-G.D.P. ratio, which the government opted to go up by about seventy per cent, has surprisingly hit cardinal per cent, and chances are that it will continue to increase up to eighty per cent in 2016. (Fatas, 2012, p. 78). The British government also blames the Eurozone crisis for the immense reduction of the amount of Britain exports goods. If the government realized that the external environment was unreliable it could have adapted to boosting the domestic market and solve