In economics, austerity is when a national government reduces its spending, to pay back creditors. Austerity is usually required when a government's fiscal deficit spending is felt to be unsustainable. Development projects, welfare programs and other social spending are common areas of spending for cuts. In many countries, austerity measures have been associated with short-term standard of living declines until economic conditions improved once fiscal balance was achieved (such as in Canada und… (More on Austerity)