According to incomplete statistics, the most frequently mentioned word in the World Economic Forum ,which is held in Switzerland last month, is "Austerity". What is Austerity? The basic idea of Austerity is that government spend less and sometimes together with raise tax rate to help reduce the deficit. The latest news said that Greece government has agreed a budget cut of 3.3 billion euro to meet the austerity requirement of eurozone to provide a second bail out package. However as soon as the government had announced the statement, protest activities by people full of anger spread all over Greece. Why? Usually the thing come together with austerity measures is a lower level of public welfare, obviously Greek people won't be happy about this. Photo below show how angry they are. Why does the eurozone stay firm to require Greece to take these austerity measures? It is said that austerity measures are like painful medicine, but can this painful medicine cure the disease? I will try to find out the answers in the next few posts.
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