It is one of the most important topics in world politics and economics, yet few understand how it works and its real impact. Austerity — that toxic combination of politics and economics — must be recognized for what it is and what it costs us. The arguments for it are thin, while the evidence of its impact on wealth and income inequality is ample. For every economy to grow, this dead economic idea needs to stay dead.
Political economist Mark Blyth, author of Austerity: The History of a Dangerous Idea, explains how austerity leads to low growth and hurts economies from local to global.
Mark Blyth is Professor of International Political Economy at Brown University. He is the author of Austerity: The History of a Dangerous Idea and Great Transformations: Economic Ideas and Institutional Change in the Twentieth Century.