Review article
https://doi.org/10.32728/ric.2017.31/5
FISCAL AUSTERITY POLICY IMPACT ON WELFARE
Romina Pržiklas Družeta
; Senior Assistant Lecturer, Faculty of Economics and Tourism “Dr. Mijo Mirković”, Juraj Dobrila University of Pula
Marinko Škare
; Full Professor, Ph.D., Faculty of Economics and Tourism “Dr. Mijo Mirković”, Juraj Dobrila University of Pula
Abstract
The ongoing global financial and economic crisis has caused a dramatic fall in growth, increased deficit, higher unemployment rates and strong price fluctuations. To achieve a balanced budget and reduce the national debt, the most of the national government have
sacrificed the employment - one of the main indicators that reflect societies’ well-being and implemented fiscal austerity policy. The aim of this paper is to contribute to the literature on this topic and assess the short analysis of fiscal consolidation. Despite the ongoing debate
and numerous studies no consensus about whether and when austerity is likely to be beneficial has been achieved. Further, there are still open issues to understand the impact of austerity on poverty and welfare because of the difficulty of defining poverty and welfare also. The main conclusion is that the emphasis should be placed on correctly defining austerity methodology in a broader economic and social context.
Keywords
Fiscal austerity; Economic growth; Welfare; Sustainability
Hrčak ID:
181101
URI
Publication date:
28.4.2017.
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