If you don’t know what austerity is at this point, I suggest that you familiarize yourself with the 2010 Merriam-Webster word of the year. I just linked you to a good definition of the word, but it’s also easy enough to provide one here. Austerity, in the context of economics, is a policy regimen involving cuts to government spending and tax increases designed to reduce government budget deficits and address long-term debt. This concept has been the dominant idea in western economic policy over the last 3-4 years. The problem? It absolutely does not work, especially in this, a demand-side crisis.
Again, I’d like to pull out my favorite Keynes quote. “The boom, not the bust, is the time for austerity.”

