do austerity measures work 
economists disagree on whether austerity measures work as they are intended to supporters of austerity measures argue that large deficits are damaging to the broader economy which can limit tax revenue austerity under this argument is effective because it lowers government spending and decreases deficits opponents argue that during a recession austerity is harmful because more people are in need of assistance government spending according to this argument lowers unemployment which increases tax revenue and reduces deficits the bottom lineausterity measures are strict frugal economic policies used by governments to manage public debt there are three main types higher taxes revenue generation to fund government spending revenue generation plus lower government spending and lower taxes plus lower government spending austerity has been used in many countries such as the united states and greece but it is a controversial policy depending on the overall economic situation and its causes austerity may improve an economy or cause further damage 