Austerity refers to a strict economic policy that the government introduces to control the growing public debt, driven by increased thrift.
There are three main types of austerity measures: revenue generation (tax increases) to finance spending, tax increases while reducing non-essential government functions, and tax cuts and cuts in government spending.
Austerity is controversial, and the national results of austerity measures can be more damaging than if they had not been implemented.
The United States, Spain and Greece have introduced austerity measures at a time of economic uncertainty.
Economic efficiency is when every scarce resource in the economy is used and distributed between producers and consumers in such a way as to provide the greatest economic return and benefit to consumers.