Austerity works. We know what it is and dont like it, but it works. It usually means cutting your consumption and spending, paying down your debts, pawning assets, and working more hours to restore your economic situation. You might invoke austerity because you lost your job, your house burned down, or you have an unexpected child on the way. You might take similar actions if the economy was in crisis. Its essentially the same thing as cutting expenses to save for a down payment on a house, paying for a childs education, or accumulating a fund for retirement.
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