Do you know what "Austerity" is?

Dictionary company Merriam-Webster ranked "austerity" as its No. 1 word of the year for 2010 because so many people looked up the definition on the company's website when Europe's debt troubles exploded.  If you're from Europe, you are most likely familiar with the term as many of the struggling economies in the region have had to resort to Austerity.

Austerity is maintaining a policy of lower spending, deficit reduction and most notably, the reduction in the amount of benefits and public services provided.

At some point in the future, the United States will have to take some measures of reducing the significant debt overhang.  For now, the government is propping up the system with deficit spending to promote the U.S. economy.  Keep an eye out for this term to be used in conjunction with the term "United States," especially if the capital markets become concerned about the United State's long-term ability to reduce public sector debt, which currently stands at nearly 90% of Gross Domestic Product.