The Dangers of Austerity
In the wake of the Great Recession, large Western governments have tried to keep their economies afloat by imposing austerity measures. The hope is that by reducing wages and spending they could bail themselves out of budget deficits and jumpstart global economic growth. The political economist Mark Blyth says that plan hasn’t worked out. He says austerity has led to sluggish growth and increasing inequality, and not for the first time, either. Blyth joins us Thursday to explain why austerity, like a zombie, is a dangerous idea that just won’t die.