[zoonosis]

Austerity is effective when it is achieved by cutting spending. The cases where it hasn't worked were because the spending cuts were accompanied with tax increases [1]. This shouldn't be a surprise because tax increases tend to decrease GDP [2].

[1] A. Alesina, C. A. Favero, and F. Giavazzi, Austerity: when it works and when it doesnt. Princeton (New Jersey): Princeton University Press, 2019.

[2] C. D. Romer and D. H. Romer, “The Macroeconomic Effects of Tax Changes: Estimates Based on a New Measure of Fiscal Shocks,” American Economic Review, vol. 100, no. 3, pp. 763–801, 2010.