American History fact every time there has been a serious attempt to reduce the US deficit since the countries founding has resulted in a depression (with the exception of the Clinton era)
Each was preceded by rampant speculation, business collapse, the state's budgets swelling, the Federal government swallowing the debt and tried to goose the economy. The economy starting to move, then the public and business leaders deciding the debt was too high started screaming for cuts. The Government listened and pulling back too early. Then the country fell off the rail till the next bubble started.
This happened over and over again until The Banking Act of 1933 better known as Glass-Steagall which was created for the next 47 years stop massive boom and bust cycles created by speculation. Then in 1980 the chipping away at the act started with Depository Institutions Deregulation and Monetary Control Act of 1980 and more and was less repealed by Gramm–Leach–Bliley Act of 1999. Starting super boom cycle that eventually ended in the Global financial crisis of 2008–2009. The only thing that kept us from going over the cliff like in 1929 was the insertion of capital by the government. Which short circuited the Depression but also brought on non-core inflation, and now is bringing demands for Massive cutting that will likely lead us into a depression.
Austerity attempts in US History.
1817-1821 = 1819-21 depression
1823-1836 1837-42 depression
1852-1857 1857-1859 depression
1867-1873 =1873-1879 depression
1880-1893 = 1893-1897 depression
1920-1930 = 1929-1941 depression