OEM China High quality Forklift Parts C05 for United Arab Emirates Factories

OEM China High quality
 Forklift Parts C05 for United Arab Emirates Factories

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  • Governments today in both Europe and the United States have succeeded in casting government spending as reckless wastefulness that has made the economy worse. In contrast, they have advanced a policy of draconian budget cuts–austerity–to solve the financial crisis. We are told that we have all lived beyond our means and now need to tighten our belts. This view conveniently forgets where all that debt came from. Not from an orgy of government spending, but as the direct result of bailing out, recapitalizing, and adding liquidity to the broken banking system. Through these actions private debt was rechristened as government debt while those responsible for generating it walked away scot free, placing the blame on the state, and the burden on the taxpayer.

    That burden now takes the form of a global turn to austerity, the policy of reducing domestic wages and prices to restore competitiveness and balance the budget. The problem, according to political economist Mark Blyth, is that austerity is a very dangerous idea. First of all, it doesn’t work. As the past four years and countless historical examples from the last 100 years show, while it makes sense for any one state to try and cut its way to growth, it simply cannot work when all states try it simultaneously: all we do is shrink the economy. In the worst case, austerity policies worsened the Great Depression and created the conditions for seizures of power by the forces responsible for the Second World War: the Nazis and the Japanese military establishment. As Blyth amply demonstrates, the arguments for austerity are tenuous and the evidence thin. Rather than expanding growth and opportunity, the repeated revival of this dead economic idea has almost always led to low growth along with increases in wealth and income inequality. Austerity demolishes the conventional wisdom, marshaling an army of facts to demand that we recognize austerity for what it is, and what it costs us.

    About the Author: Mark Blyth is a faculty fellow at the Watson Institute, professor of international political economy in Brown’s Political Science Department, and director of the University’s undergraduate programs in development studies and international relations.

    He is the author of Great Transformations: Economic Ideas and Institutional Change in the Twentieth Century; editor of The Routledge Handbook of International Political Economy: IPE as a Global Conversation, which surveys different schools of IPE around the globe; and co-editor of a volume on constructivist theory and political economy titled Constructing the International Economy. He is working on a new book that questions the political and economic sustainability of liberal democracies, called The End of the Liberal World?

    Blyth is a member of the Warwick Commission on International Financial Reform. He is a member of the editorial board of the Review of International Political Economy, and his articles have appeared in journals such as the American Political Science Review, Perspectives on Politics, Comparative Politics, and World Politics.

    He has a PhD in political science from Columbia University and taught at Johns Hopkins University from 1997 to 2009.

    This talk was hosted by Boris Debic on behalf of Authors@Google.

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