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Meaning: cuts in government spending on public programs and services

For example:

  • Austerity programs cut government spending so that taxes for companies and the rich can be lower.

  • Our schools, hospitals and welfare programs got much less money in those years of so-called "austerity".

Quick Quiz:

During austerity programs, government budgets

a. help poor people more

b. help poor people less

c. help rich people less

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Contributor: Matt Errey