The Political Economy of Austerity in the United States

In the face of failed economic performance and intellectual disarray, it is surprising that austerity continues to have such an influence on economic thinking and policies. This article traces the history of austerity policies in the United States, seeking to account for the power that such ideas continue to have. Austerity policies are slowing the economy and preventing necessary public investments that can help support future economic growth. Understanding the continuing power of these ideas and policies is one part of creating a better informed policy debate, and advocating for policies that can help restore economic growth and promote social equality.