THE STATE

Austerity: The history of a Dangerous Idea

Mark Blyth, Oxford University Press, 2013.

BY

FORUM NEW ECONOMY

PUBLISHED

1. NOVEMBER 2019

READING TIME

1 MIN.

In his ground-breaking book Blyth demonstrates that the case for austerity is tenuous at best. While it is possible for one country to cut its way to growth, it is impossible for all to do so simultaneously, and in all circumstances austerity imposes a disproportionate burden on poor households.

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ABOUT THE STATE

KNOWLEDGE BASE

For decades, there was a consensus that reducing the role of the state and cutting public debt would generate wealth. This contributed to a chronic underinvestment in education and public infrastructure. New research focuses on establishing when and how governments need to intervene to better contribute to long-term prosperity and to stabilize rather than aggravate economic fluctuations.

ARTICLE OVERVIEW