Austerity is an economic term describing government measures to reduce and eliminate budget deficits. The measures include spending cuts, tax increases or a combination of both. Often, austerity measures are part of a compromise between the government and its creditors as a condition for the creditors making additional loans to the government.Because of the financial hardship they create, austerity programs are not popular among a country’s citizenry. The reduction in spending reduces GDP, which slows the economy and raises unemployment – typically already high in a country that is forced to adopt austerity measures. In addition, the austerity measure’s drastic budget cuts reduce the quality of government services. Finally, citizens do not like their country’s fiscal policy being imposed by unelected officials who often are not fellow citizens. Note that some economists think austerity measures ultimately boost an economy as individuals change their expectations about taxes and government spending, which leads to an increase in private consumption. After the financial crisis of 2007-2008, many governments incurred large amounts of debt to try to stimulate their economies. The budget deficits caused by the debt created a fiscal crisis for many countries, including Greece, Ireland and Spain. These countries were forced to adopt stringent austerity measures in order for them to be able to borrow more money to fully fund their governments. Implementing these measures led to protests and political upheaval in some of those countries.