Economics
Austerity
An economic policy of reducing government spending and increasing taxes to decrease budget deficits, typically during periods of financial crisis.
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.