economics

austerity

Difficult economic conditions created by government measures to reduce public spending and debt.

Example

"The government's austerity measures cut public services and raised taxes to reduce the deficit."

💡 Memory Tip

Auster-ITY — auster sounds like 'austere,' meaning strict and severe. Austerity is strict economic discipline.

Etymology

From Greek 'austeros' meaning 'harsh, severe' — harsh economic conditions.

Common Misspellings

austeretyausterityaustirityausteraty

Related Terms

deficitfiscal policydebtrecession

Want to understand money better? Get money tips and new terms in your inbox.