What is “fiscal adjustment”?

In an article published on August 13 by the Folha de S. Paulo newspaper, columnist and economist Monica Bolle raised an interesting question about the economic crisis: What is fiscal adjustment? According to a study revealed by the columnist, more than half of the lower class population does not know what fiscal adjustment means, although they have heard about it. Even so, everyone knew how to answer what they do to save in times of crisis: they cut spending. Asked if the government did the same as they did in times of crisis, almost all responded that the government "takes care of the worker" or "steals money". According to Monica, if the population had more information on fiscal adjustment, they would have a different view of the government.

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