Late last year, economist and Time columnist Zachary Karabell reminded his readers of the dangers of austerity during recessionary times:
As Liaquat Ahamed charted in Lords of Finance, his Pulitzer-winning account of central bankers' policymaking before the Great Depression, the orthodoxy of austerity and budget cutting hobbled the world and led to a decade of deflation and depression.I'll be watching over the next few months to see if any DC politicians or influential TV media personalities point out the dangers of austerity during tough times.
The Tea Party has woven a story of government overreach that includes deficits, health care, job loss and general disdain for Washington and Wall Street elitism. It's a simple narrative fueled by legitimate outrage at the cozy system of influence that characterizes politics today. But as economic policy, it is the 2010 version of what the blind, rigid bankers of the 1920s and '30s offered—and it will sink an already leaking ship.
Who will lead the anti-austerity parade?
Visit this blog's homepage.