Past Present Future The History of Bad Ideas: Austerity
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Jun 15, 2025 
Join economist Mark Blyth, known for his critical insights on austerity, as he unpacks the history and implications of this enduring bad idea. He explains why austerity often emerges during crises, not when economies flourish, and discusses its historical roots in events like the Great Depression and the 2008 financial crisis. Blyth critiques the effectiveness of austerity in Britain and Argentina, highlighting the paradox of strict fiscal measures during economic downturns. Discover how these policies impact public perception and the political landscape today.
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Origin of Modern States
- Modern states emerged through commodification of common resources, often violently.
- States must balance protection of property with the risk of becoming greedy and overpowering.
Dual Views of the State
- The state is seen both as greedy and pandering in austerity theory.
- Proponents switch between these views without acknowledging their difference, complicating austerity debates.
When Austerity Hits
- Austerity happens mostly during economic downturns, despite seeming counterintuitive.
- Political and market pressures force belt tightening even when the state is already weak.
