The Austerity Delusion

Blyth, Mark
May 2013
Foreign Affairs;May/Jun2013, Vol. 92 Issue 3, p41
The article discusses the ineffectiveness of austerity, or reduction of public spending, as a method of encouraging economic growth and recovery, with a focus on the U.S. sequestration in 2013. Topics include the failure of austerity measures implemented in Europe in an attempt to combat the effects of the 2008 global financial crisis, the factors that undermine the intuitive appeal of austerity, and the transformation of liberal economic theory in response to historic events including World War I, stagflation, and the Great Depression.


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