definition

What is Austerity?

What is Austerity?

Readers question: What is Austerity? Simple definition of AusterityAusterity involves policies to reduce government spending (or higher taxes) in order to try and reduce government budget deficits – during a period of weak economic growth.Austerity policies are often associated with higher unemployment and lower economic growth.Austerity policies (and automatic stablisers) have reduced levels of government borrowing since 2010. More complex points and definitions of austerity The term austerity is more likely to be used when government spending cuts and higher taxes occur…