Austerity

 

In economics, austerity exists as the enactment of legislative policy precipitating the incidence of monetary contraction, decreased expenditure, and a marked declination in the amount of benefits or public services provided that are instituted through government mandate (In theory, the implementation of austerity measures would effect a reduction in deficit spending. A socio-economic condition synonymous with cycles of contraction, these legislative measures exhibit an interdependent relationship with conspicuous tax increases as a means to generate the revenue necessary to repay creditors [an individual, organization, company/ corporate entity, or foreign government possessing a monetary claim to the services of a second party] to whom a preexisting debt is owed). Oftentimes austerity measures and the enactment of such fiscally motivated legislation occur in advance of hyperinflation as the currency relative to a particular nation, province, or principality ceases to maintain its intrinsic market value. The actualization of these types of provisions oftentimes coincides with the government’s tendency to borrow monetary assets/ capital to fund projects or initiatives contrary to the public interest.