Austerity refers to a set of economic policies aimed at reducing government deficits during periods of financial crisis. These measures often involve cutting public spending, increasing taxes, and reducing benefits. The goal is to stabilize the economy by lowering debt levels and restoring investor confidence. Countries like Greece and Spain have implemented austerity measures in response to economic challenges. While proponents argue that austerity can lead to long-term financial stability, critics claim it can harm economic growth and increase unemployment, leading to social unrest and public dissatisfaction.