Prof. Mark Blyth explains "Why Austerity Is a Dangerous Idea" in Time:
"...for people to save, they need to have income from which to save. So if you are, for example, a state in the Eurozone today, and every similar state saves at the same time by cutting spending, the result is the shrinkage of everyone’s economy since they are each other’s trading partners and sources of income. Perversely, their debt goes up, not down, relative to their (shrinking) GDP, which is what has happened to every European country that has undergone an austerity program since 2010. They now have more debt, not less."