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Fact. There is a link between cuts and riots

In a recent study, we focused on the link between austerity measures and unrest. We analysed a large number of countries, over almost a century, to unearth some empirical regularities. In two studies, we analysed unrest in 28 European countries from 1919 to 2009, and in 11 Latin American countries since 1937. What we found is a clear and positive statistical association between expenditure cuts and the level of unrest.

Interestingly, tax increases do not have the same effect. While they are also associated with greater instability, the effect is small, and the link weak. This suggests that governments wanting to retrench, but worried about social instability, should consider tax increases, first and foremost.