Book Review: Austerity by Mark Blyth

In Austerity Mark Blyth dives into what is now a very entrenched belief in American politics. Explained simply, austerity is just scaling back government spending in the form of budget cuts, privatization, and making way for private sector investments. If this sounds familiar it's because this has been the American Republican economic policy for some time now. In his book, Mark Blyth explores both the ideological history and practical applications of Austerity, as well as some brief notes about how it relates to our current crisis. The books is apparently meant to be modular too, so if any of those topics interest you, you'd be able to read one section without having read any of the others. Or so Blyth says. After reading the whole book cover to cover it is pretty obvious that not having read some sections will leave other sections less powerful since Blyth's thesis draws strength in its scope of study on the subject. For example the history of austerity as an idea and the history of its applications combine to make austerity as a concept truly inadequate in any capacity.

And this is essentially what Blyth's book says over and over; no, austerity never 'works'. By works, he means that it fails to pull a state out of economic depression over and over. Some countries like Germany can practice austerity and run a surplus, but Blyth points out that if every country did that it would be short-lived as there would be no one actually spending money. This is precisely why austerity is so dangerous; it seems to make common sense. Left, Right, Center, a lot of people regardless of political affiliation might agree that during a recession the government should spend less, should strive for surplus and growth in an attempt to pull itself out of perpetual unemployment and economic travesty. Yet, historically speaking, Blyth shows us it is impossible to cut one's way to growth. Every country that has tried to do so has either failed or forced its citizens through grotesquely long bouts of unemployment and poverty before the economy righted itself after some sort of bailout. Currently, austerity is halving practicing country's demand and subsequently growth. The more countries that practice it the worse off export and import markets become too. Wages take a hit, social programs become broken or profit driven, productivity becomes stagnant, and despite all of this the debt rarely corrects itself. Blyth explains that the ideological stance for austerity began with libertarian/anti government thinkers who, lamenting that the government was necessary if only to protect property rights, didn't want to pay for an expanding state, believing that it interferes with markets. The problem with this is that if you don't properly fund the state it won't do what it necessarily needs to do properly. It seems the reason for austerity now is that politicians are convinced that the market alone, with limited if any help from the government, will take care of itself. The problem that this book highlights is that it won't and it never has.

Blyth is fun to read in some part because he isn't a partisan extremist. He doesn't use words like "austerity jihadists" as Krugman might and he doesn't believe in some corrupt republican party agenda like mass privatization in return for kickbacks. He rather casually posits that the ideology, uses, and justification of austerity are flawed, but given its intention it remains used despite a distinct lack of results. On that same note, Blyth can get intensely over dense when talking about economic theory or history and the book has one of the biggest shit show post-scripts I've ever read. It's definitely worth picking up if you're interested, for example, in why schools historically keep getting their budgets gutted, but it might not be the most riveting thing you'll read all summer.