The phrase "austerity reduced" is correct and usable in written English.
It can be used in contexts discussing the effects or outcomes of austerity measures on budgets, spending, or economic conditions.
Example: "The government's austerity reduced public spending significantly, leading to widespread criticism from various sectors."
Alternatives: "austerity measures decreased" or "austerity led to reductions".
But how will these innovations work in an age of austerity, reduced pensions, later retirement and rising housing costs?
Spanish austerity reduced the government's structural deficit by more than two percentage points from 2011 to 2012.
As Professor John Van Reenen noted in a new paper last week*, the Office for Budget Responsibility calculated that austerity reduced GDP growth by 1 per cent in both 2010 and 2011, but he notes that recent research on the impact of government spending in recessions suggests that this "is likely to be an underestimate of the negative impact".
When David Cameron became Prime Minister in 2010, Tory-led governments embraced and expanded the New Labour policy of handing public services to private "partners", but under austerity reduced the amount they spent, making the situation even worse.
Both accounts concede that austerity reduces the deficit in the short run.
Rousseff became a believer in expansionary fiscal austerity, reducing public investment by more than 30% in 2015 and slashing federal spending.
Economists have known for at over 75 years that austerity reduces the already inadequate demand and exacerbates the recession, as we have seen in the eurozone.
Austerity reduces growth so severely that it throws a nation back into recession, increases unemployment, increases misery by cutting social programs when they are most needed, and can often increase the deficit.
One possibility that must be considered is whether the substantial gains in survival at older ages seen in recent decades, and thought to be driven largely by improvements in the management of chronic disorders, such as hypertension and its complications, particularly in older patients, will continue given policies of austerity reducing access to health care in some countries.
Instead, they say, Greece should stick to its agreed plan of austerity and reduced budget deficits.
In fact, he says, the OBR calculates that austerity has reduced economic growth by 1.4% in 2011-2012.
