Reduced government spending via a reduction in the amount of benefits and public services provided. In periods of recession and high unemployment, it can be counterproductive because it can increase unemployment. Also downsizing early forced retirement for boomers: austerity, bad jobs. The activities examined are: employment, industrial productivity, interest rates. There are four phases to the business cycle and they are: recovery: however, as phase goes on productivity becomes less elastic, restricted access, appear with rising costs deliveries are trickier and plants may have to be extended. Under these stipulations, prices rise: prosperity: in the wealthy stage, demand, productivity and earnings are at a high level. But remuneration such as salaries, wages, interest rates rentals and taxes do not rise in proportion to the rise in prices: recession (turning point, consequently profit margins decline further for the reason that costs begins overtaking prices.