Austerity is a set of political-economic policies that aim to reduce government budget deficits through spending cuts, tax increases, or a combination of both. Austerity measures are used by governments; the measures are meant to reduce the budget deficit by bringing government revenues closer to expenditures, assumed to make the payment of debt easier. Austerity measures demonstrate a government's fiscal discipline to creditors and credit rating agencies. In most macroeconomic models, austerity policies increase unemployment as government spending falls. Cutbacks in government spending reduce employment in the public and may do so in the private sector. Additionally, tax increases can reduce consumption by cutting household disposable income; some claim that reducing spending may result in a higher debt-to-GDP ratio because government expenditure itself is a component of GDP. In the aftermath of the Great Recession, for instance, austerity measures in many European countries were followed by rising unemployment and debt-to-GDP ratios despite reductions in budget deficits.

When an economy is operating at or near capacity, higher short-term deficit spending can cause interest rates to rise, resulting in a reduction in private investment, which in turn reduces economic growth. Where there is excess capacity, the stimulus can result in an increase in output. Austerity measures are pursued if there is a threat that a government cannot honour its debt obligations; this may occur when a government has borrowed in foreign currencies, or if it has been forbidden from issuing its own currency. Alberto Alesina, Carlo Favero, Francesco Giavazzi argue that austerity can be expansionary in situations where government reduction in spending is offset by greater increases in aggregate demand. In such a situation and investors may lose confidence in a government's ability or willingness to pay, either refuse to roll over existing debts, or demand high interest rates. International financial institutions such as the International Monetary Fund may demand austerity measures as part of Structural Adjustment Programmes when acting as lender of last resort.

Austerity policies may appeal to the wealthier class of creditors, who prefer low inflation and the higher probability of payback on their government securities by less profligate governments. More austerity has been pursued after governments became indebted by assuming private debts following banking crises. According to Mark Blyth, the concept of austerity emerged in the 20th century, when large states acquired sizable budgets. However, Blyth argues that the theories and sensibilities about the role of the state and capitalist markets that underline austerity emerged from the 17th century onwards. Austerity is grounded in liberal economics' view of the state and sovereign debt as problematic. Blyth traces the discourse of austerity back to John Locke's theory of private property and derivative theory of the state, David Hume's ideas about money and the virtue of merchants, Adam Smith's theories on economic growth and taxes. On the basis of classic liberal ideas, austerity emerged as a doctrine of neoliberalism in the 20th century.

Economist David M. Kotz suggests that the implementation of austerity measures following the financial crisis of 2007–2008 was an attempt to preserve the neoliberal capitalist model. In the 1930s during the Great Depression, anti-austerity arguments gained more prominence. John Maynard Keynes became a well known anti-austerity economist, arguing that "The boom, not the slump, is the right time for austerity at the Treasury." Contemporary Keynesian economists argue that budget deficits are appropriate when an economy is in recession, to reduce unemployment and help spur GDP growth. According to Paul Krugman, since a government is not like a household, reductions in government spending during economic downturns worsen the crisis. Across an economy, one person's spending is another person's income. In other words, if everyone is trying to reduce their spending, the economy can be trapped in what economists call the paradox of thrift, worsening the recession as GDP falls. In the past this has been offset by encouraging consumerism to rely on debt, but after the 2008 crisis, this is looking like a less and less viable option for sustainable economics.

Krugman argues that, if the private sector is unable or unwilling to consume at a level that increases GDP and employment sufficiently the government should be spending more in order to offset the decline in private spending. Keynesian theory is proposed as being responsible for post-war boom years, before the 1970s, when public sector investment was at its highest across Europe encouraged by the Marshall Plan. An important component of economic output is business investment, but there is no reason to expect it to stabilize at full utilization of the economy's resources. High business profits do not lead to increased economic growth. Economists Kenneth Rogoff and Carmen Reinhart wrote in April 2013, "Austerity works without structural reforms – for example, changes in taxes and labor market policies – and if poorly designed, can dispr

The Chicago Cardinals were a professional ice hockey team playing in the American Hockey Association. The team only played one season in the league, it was notable because it was founded by Eddie Livingstone, a Toronto businessman, who had owned an ice hockey team in the National Hockey Association and whose actions led the owners of the NHA to disband the league and form the National Hockey League in 1917. The Cardinals were formed by Livingstone in an attempt to bring about a rival league to the NHL; because of the Cardinals, the NHL attempted to steal its players. The Cardinals would fold under the pressure placed on the team. Livingstone would attempt to recoup his losses by selling the team, he tried to sue for damages. The American Hockey Association was founded in October 1926; the Chicago franchise was purchased by Livingstone. Livingstone was president of the franchise and Nip Dwan was the coach. Training camp was held in secret at the Mutual Street Arena in Toronto. After the NHL caught wind of the franchise, the AHA president asked Livingstone to limit his ownership to one season only.

Livingstone refused and the team began to play at the Chicago Coliseum. The game of ice hockey was new to Chicago and a price war broke out between the Cardinals and the Black Hawks. NHL president Calder declared the NHL-AHA co-operation agreement void and declared that two players of the Cardinals belonged to other teams. McLaughlin began asking players to leave the team; the AHA found that Teddy Graham had broken a valid contract and was fined the amount of the difference between his Cardinals' contract and his contract with London, Ontario Ravens of the Ontario Senior League. The price war sent the Cardinals into financial difficulty and the team was sold in March 1927 to a syndicate of Chicago businessmen, led by Harry Herendeen, a Chicago miller, which intended to continue the team as the "Chicago Americans." The team played two games against the Duluth Hornets under the new ownership. However, the league did not approve the transfer and Livingstone suspended the team on the day of a game with St. Paul.

The Coliseum announced. Livingstone said. After the 1926–27 season, the AHA wanted to negotiate a new agreement with the NHL, setting out the rules for how the leagues would work together. NHL president Frank Calder threatened not to sign an agreement while the AHA was working with Livingstone. On August 24, 1927, the AHA terminated Livingstone's membership in the league; when Livingstone tried to sell the franchise, he was told that he did not have one to sell and that four of his players were now the property of the Black Hawks. In December 1927, he filed a $700,000 lawsuit against Frederic McLaughlin, owner of the Black Hawks, two other members of the Black Hawks, charging them with tampering with his players and claiming that his team was taken away from him through a conspiracy; the suit went to trial in September and October 1930. A mistrial was declared on October 2; the suit was withdrawn on October 10 after a motion by Livingstone's lawyer, objecting to the lack of evidence he was allowed to present.

In January 1931 filed suit again, against McLaughlin and 17 other defendants for $750,000 alleging a conspiracy to wreck his team. This suit did not proceed to trial; the team won its first game 3–0 versus the Detroit Greyhounds at the Chicago Coliseum on November 21, 1926, before 3,000 fans. The crowd was less than half the size of the crowd which had turned out for the Black Hawks' home opener the week before. Winston Fisher recorded the shutout, Gord Brydson scored the team's first goal. Club folded on March 21, 1927. Most of the players were making their professional debuts, having been selected from the amateur ice hockey ranks in Ontario by Livingstone. Several of the players would go on to minor league careers and several played in the NHL. * Played in the NHL Source: Society for International Hockey Research BibliographyRoss, J. Andrew. Joining the Clubs: The Business of the National Hockey League to 1945. Syracuse University Press. Notes

Alain Zimmermann is the Chief Executive Officer of Swiss luxury watch manufacturer Baume & Mercier. His experience in the luxury industry spans over 20 years, having held positions in L’Oréal, Cartier and IWC. Alain Zimmermann was born in Alsace, France in 1967, he attended school in the French town of Reims where he obtained a DESEM in Marketing at the Reims Management School in 1987. He went on to study at Reutlingen University in Germany, graduating in 1989 with a degree in Business Administration specializing in Marketing & Logistics. Zimmermann first began his career at L’Oréal Germany in 1989. Having signed with the company for a 16-month V. S. N. C, he went on the stay with L’Oréal until 1995. At L’Oréal he encountered the world of luxury products, marketing their leading perfumes including Paloma Picasso and Ralph Lauren. In 1995, Alain Zimmermann joined the watch brand Cartier in Germany. Four years he transferred from Munich to Paris, where he was appointed to International Development Director of the Cartier perfume range.

Zimmermann joined IWC, the luxury watchmakers from Schaffhausen, in 2002. In what was his first foray into haute horology, Zimmerman learned about fine watchmaking through top experts. Zimmermann remained at IWC for five years and held a series of international sales and marketing roles. In 2006, Zimmermann moved to the private bank based in Zurich. There, he held the position of Marketing & Communications Managing Director for a period of three years, before returning to IWC as the Chief Marketing Officer. In 2009, Alain Zimmermann assumed his current position at the Swiss-based luxury watch manufacturer Baume et Mercier as CEO. Zimmermann lives with his wife and two children in Switzerland, where he pursues his passion for skiing and photography among other interests. "Baume & Mercier - La revitalisation intégrale" "Interview: Richemont's Baume & Mercier Nears Break Even" "Baume & Mercier - Recaptures Life’s Moments" "CEO of Baume & Mercier Alain Zimmermann Talks About 2012 Collection" "Watchmaker sets sights on the future" "Baume & Mercier - New Brand Positioning with Alain Zimmermann"