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The weakness in household spending reduced the likelihood the Bank of Japan will increase interest rates.
It cut capital spending, reduced its contributions to its employees' retirement funds and slashed its dividend to preserve cash.
The company attributed the diminished revenues to cuts in corporate spending, reduced business travel and the continuing impact of the national economic slowdown.
Reductions in government spending reduced the pace of growth in the first quarter by more than one percentage point, and the cuts have continued.
"Our main interest is in policy — in particular, seeing the federal government spending reduced, hopefully in a sustained way, so that our country does not go bankrupt".
See articleAt the Conservative Party conference in Manchester the shadow chancellor, George Osborne, set out plans for swingeing cuts in government spending, reduced middle-class benefits and public-sector pay freezes.
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He advocated cutting government spending, reducing retirement benefits for public servants, and radically deregulating the economy.
Indeed, the firms significantly cut physical and R&D spending, reduce employment, and experience lower sales.
For now, it appears that government spending reduces private spending, even while it may benefit specific regions or groups.
Mr. Golisano has said only that he will balance the budget by cutting spending, reducing waste and improving management.
It is sometimes argued that deficit spending reduces employment because of fears over the future repayment of the debt.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com