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Created conditions which are permanently damaging the economy for generations to come
It is also considered to be unfair and unjust by many that the country should have to foot the bill for the reckless and negligent behaviour of the banks, which resulted in the banking crisis. (It should be remembered that the national debt is only as high as it is because the government had to plough vast sums of money into the banks to stop them going bankrupt). It is also felt that with this approach the government is looking after the people that caused the recession at the expense of the majority of people in the country. The government’s argument is that the financial sector contributes a significant amount to the economy and that the banks should be looked after. It should also be remembered, crucially, that most of the cuts are yet to bite and the worst is yet to come. Many fear that once the full effect of the austerity measures are felt we will find ourselves in an austerity trap – little demand to fuel growth and employment, and the prospect of spiraling into a never-ending and deeper recession.
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