Austerity Program in England

Abstract

England is considered to be among the most developed countries in the world. The recession has hit each and every country and England is also a victim of recession. The paper discusses the current situation of England including the main economical trends like, GDP, unemployment, inflation etc. The paper also discusses the differentiation between debt and deficit and its role with austerity. The paper mainly deals with the austerity program in England by discussing the economical situations of England.

Austerity Program in England

Introduction

England is amongst the most developed countries of the world. There are so many international trades which are taking place in England. Different organizations and sectors are producing at different level. Health care sector, fast moving consumer goods and banking sectors are just a few of the examples which are excelling well in England. Just like any other country over the globe, England has also been hit by recession, lately. It has been noticed that the gross domestic product has also been affected due to the severe recession. In England, the unemployment rate has increased because of different reasons and recession is amongst the most basic reasons of that. There are ways with the help of which the employment rate can be increased. Under the discussion section different points are discussed.

Discussion

Current Situation of England

A country's growth is judged by its GDP. Gross domestic product is defined as the ability of a country to produce goods. GDP is judged against the previous year's GDP. GDP is calculated on different basis. These approaches are based on income and expenditure (Discrepancies between the three measures of GDP, 1997). For any country unemployment is very hazardous. Unemployment gives birth to different problems which include adversity in growth of a country, difficulty in increasing the trade of the country and increased number of human resource getting wasted. Inflation is another factor with which a country faces hardships. There are so many citizens who get affected by increase in inflation in a country. It is the duty of a country to lower down the inflation f the country by taking required steps. Government debt is the amount of liabilities borrowed by a country through banks, other countries or different financial intermediaries etc. This is also known as national debt. There are 2 types of such debts internal (money borrowed from different sectors within a country) and external (money borrowed from other countries). Deficit is all about the difference between the amounts which a federal government receives on its spending.

Keeping England under observation it can be easily observed that the GDP has decreased in terms of the volume. The 0.5% of decrease may not sound huge but for a country like England it is huge in terms of its impact. It has been observed that, the rate of unemployment has increased in United Kingdom. For instance in Humber and Yorkshire has increased from 9.3% to 9.7%. On the contrary the percentage rate of unemployment has increased from ...