What are Austerity Measures?
With the recurring crisis in the Eurozone, there's been a lot of talk of austerity measures — whether countries in need, like Greece, will take them; whether they do any good; whether they can be forced on a country in crisis by other countries that are economically linked to the crisis-country. But what are austerity measures, and why are they so named?
Austerity is defined as "enforced or extreme economy," and it derives from earlier meanings of austerity that have to do with self-denial and ascetic practice. (Austerity comes from the adjective austere, which means "harsh.") Economic austerity is usually enacted on a national scale, and it can involve reducing government spending, increasing tax revenue, or both.
Why do austerity measures seem to be so unpopular? Often, reduced government spending affects social services, like unemployment benefits or heating subsidies, as well as adds more of a tax burden on people who are already feeling the monetary pinch.
Austerity was the Word of the Year in 2010 — the same year that the Great Recession hit the Eurozone and the debt crisis began; and it was a trending word (a word with a marked increase in the volume of look-ups) in the summer of 2015 with the focus on the Greek debt crisis.
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