Slaves of Defunct Economists
Why politicians pursue austerity policies that never work.
Austerity: The History of a Dangerous Idea
by Mark Blyth
Oxford University Press, 304 pp.
by Mark Blyth
Oxford University Press, 304 pp.
This makes no economic sense. Olivier Blanchard, chief economist at the International Monetary Fund, has pleaded for Britain to start focusing on growth rather than fiscal virtue, claiming that “we’ve never been passionate about austerity.” It doesn’t make any political sense, either. Voters like vague proposals for “reducing government waste” in the abstract, but hate cuts to programs that they care about. Why do so many members of the political elite disagree with Blanchard in their visceral passion for austerity? Why do they keep on pushing for pain when it threatens economic ruin and hurts their election chances?
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