Economics
Austerity
An economic policy of reducing government spending and increasing taxes to decrease budget deficits, typically during periods of financial crisis.
Used in the Books
This term appears in 1 chapter:
Biological Context
Organisms practice biological austerity during resource scarcity—reducing metabolic rate, shrinking organs, and cutting non-essential functions. Hibernation, estivation, and diapause are extreme forms of metabolic austerity.
Business Application
Companies implement austerity measures during downturns: hiring freezes, travel bans, discretionary spending cuts. Like biological dormancy, corporate austerity trades growth potential for survival. The challenge is knowing when austerity helps versus when it causes irreversible damage.