How didnthe economic crisis affect people's lives views on capitalism? in what ways did the government leaders and individuals respond to the economic crisis?

The economic crisis decreased economic growth and employment levels. High unemployment figures, decreased the amount of income available of households and hence, of potential consumers. Demand decreased, reducing even further both production and employment levels.

Goverments and people have mainly responded with the implementation of austerity measures, which consist on reducing budget deficits generated in previous periods when, due to the crisis circumstances, expenditures had exceeded the total amount of revenues earned.

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