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Austerity: The Great Failure
In times of economic crisis austerity becomes a rallying cry, but what does history tell us about its chances for success?
Austerity is at the center of political debates today. Its defenders praise it as a panacea that will prepare the ground for future growth and stability. Critics insist it will precipitate a vicious cycle of economic decline, possibly leading to political collapse. But the notion that abstinence from consumption brings benefits to states, societies, or individuals is hardly new. This book puts the debates of our own day in perspective by exploring the long history of austerity—a popular idea that lives on despite a track record of dismal failure.
Florian Schui shows that arguments in favor of austerity were—and are today—mainly based on moral and political considerations, rather than on economic analysis. Unexpectedly, it is the critics of austerity who have framed their arguments in the language of economics. Schui finds that austerity has failed intellectually and in economic terms every time it has been attempted. He examines thinkers who have influenced our ideas about abstinence from Aristotle through such modern economic thinkers as Smith, Marx, Veblen, Weber, Hayek, and Keynes, as well as the motives behind specific twentieth-century austerity efforts. The persistence of the concept cannot be explained from an economic perspective, Schui concludes, but only from the persuasive appeal of the moral and political ideas linked to it.
Austerity is at the center of political debates today. Its defenders praise it as a panacea that will prepare the ground for future growth and stability. Critics insist it will precipitate a vicious cycle of economic decline, possibly leading to political collapse. But the notion that abstinence from consumption brings benefits to states, societies, or individuals is hardly new. This book puts the debates of our own day in perspective by exploring the long history of austerity—a popular idea that lives on despite a track record of dismal failure.
Florian Schui shows that arguments in favor of austerity were—and are today—mainly based on moral and political considerations, rather than on economic analysis. Unexpectedly, it is the critics of austerity who have framed their arguments in the language of economics. Schui finds that austerity has failed intellectually and in economic terms every time it has been attempted. He examines thinkers who have influenced our ideas about abstinence from Aristotle through such modern economic thinkers as Smith, Marx, Veblen, Weber, Hayek, and Keynes, as well as the motives behind specific twentieth-century austerity efforts. The persistence of the concept cannot be explained from an economic perspective, Schui concludes, but only from the persuasive appeal of the moral and political ideas linked to it.
232 pages, Hardcover
First published January 1, 2014
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Displaying 1 - 4 of 4 reviews
August 31, 2019
When beginning the book, my hope was for a discussion of both the economic and moral failures of the post GFC “austerity” policy stances in Europe and the U.S. The author’s exposition of the historical roots of austerity is well-developed and sets the stage for what could have been a compelling critique of fiscal consolidation in the immediate aftermath of the prime mortgage bust and the pernicious interplay between the financial crisis and the broader macroeconomy. This never happens. Notwithstanding, a book well worth reading.
May 5, 2015
Many people talk about austerity and might have a vague understanding about what it means, whether practically or theoretically, yet do they really understand the finer points of what it involves and how it came about? Maybe this book will fill in the missing details.
On the face of it, austerity is good. It is saving something isn’t it? It is cutting down on waste, tightening our belts and seeking to manage on more meagre, austere resources. Others say it is destructive, leading to a vicious cycle of economic decline. Maybe the “right level” of austerity is neither too little and neither too much. The author takes a considerate, historical tour around all matters austerity, arguing that many austerity advocates have taken their position primarily on moral and political grounds instead of troubling themselves with purely economic matters. Does austerity work in the long term? The author doesn’t appear to be overly confident of this, arguing that austerity has failed intellectually and in economic terms every time it has been attempted.
Make no mistake! This is not a thinly veiled piece of political dogma that is seeking to open the spending floodgates within the public sector. It is not a manifesto for change either. It provides a fairly neutral, interesting historical overview of the “austerity experiment” to date. It might transform your current-day thinking or it may reinforce it, but irrespective of that this book will provide an additional level of interesting knowledge to surely every reader.
This was a great book, whether as a primer for academic study, an interesting bedside companion or something to while away a few hours on the beach for those who don’t care for light-read fiction. Politicians and union leaders alike should be sent a copy…
Austerity, written by Florian Schui and published by Yale University Press. ISBN 9780300212778, 232 pages. YYYY
On the face of it, austerity is good. It is saving something isn’t it? It is cutting down on waste, tightening our belts and seeking to manage on more meagre, austere resources. Others say it is destructive, leading to a vicious cycle of economic decline. Maybe the “right level” of austerity is neither too little and neither too much. The author takes a considerate, historical tour around all matters austerity, arguing that many austerity advocates have taken their position primarily on moral and political grounds instead of troubling themselves with purely economic matters. Does austerity work in the long term? The author doesn’t appear to be overly confident of this, arguing that austerity has failed intellectually and in economic terms every time it has been attempted.
Make no mistake! This is not a thinly veiled piece of political dogma that is seeking to open the spending floodgates within the public sector. It is not a manifesto for change either. It provides a fairly neutral, interesting historical overview of the “austerity experiment” to date. It might transform your current-day thinking or it may reinforce it, but irrespective of that this book will provide an additional level of interesting knowledge to surely every reader.
This was a great book, whether as a primer for academic study, an interesting bedside companion or something to while away a few hours on the beach for those who don’t care for light-read fiction. Politicians and union leaders alike should be sent a copy…
Austerity, written by Florian Schui and published by Yale University Press. ISBN 9780300212778, 232 pages. YYYY
October 27, 2014
Beautiful statement illustrating how Austerity policies appeal because they sound noble and moral - that is, they connect emotionally as "good" rather than rationally -
"The persuasive power of austerity arguments lies in part the way in which they allude to familiar moral and cultural categories of moderation, sacrifice and cathartic cleansing. Even where we do not understand the economic logic associated with austerity arguments - or where they are presented without a compelling economic rationale - their emotional appeal is strong. Austerity speaks to our superego in a way that economic arguments never can."
p27 "Politicians who suggest that we may have to contend with a period of austerity can therefore be certain of finding audiences who sympathise with their message without necessarily engaging with the associated economic rationales."
p28 "Ancient philosophers and the religious tradition of Christianity both found ways to accommodate historical realities in which luxury spending and ostentation played an important role".
p29 "This kind of prioritization of moral over economic considerations may seem only rational if an apocalyptic firestorm is to be a possible sanction for unethical conduct"
"The persuasive power of austerity arguments lies in part the way in which they allude to familiar moral and cultural categories of moderation, sacrifice and cathartic cleansing. Even where we do not understand the economic logic associated with austerity arguments - or where they are presented without a compelling economic rationale - their emotional appeal is strong. Austerity speaks to our superego in a way that economic arguments never can."
p27 "Politicians who suggest that we may have to contend with a period of austerity can therefore be certain of finding audiences who sympathise with their message without necessarily engaging with the associated economic rationales."
p28 "Ancient philosophers and the religious tradition of Christianity both found ways to accommodate historical realities in which luxury spending and ostentation played an important role".
p29 "This kind of prioritization of moral over economic considerations may seem only rational if an apocalyptic firestorm is to be a possible sanction for unethical conduct"
June 23, 2014
Decent overview of the philosophical, economic and political ideas that influenced the infamous neoliberal austerity policies. Felt like it illuminated a good overview of the ideas of keynes and hayek and their historical context, that said one criticism I had was the book had a fairly poor take on environmentalist arguments apart from it's criticisms of Malthus ideas, although I feel like I'll need to read the main text it sources for most of it's arguments.
Displaying 1 - 4 of 4 reviews