As an idea, austerity’s power lies in its simplicity; a balanced budget leads to economic growth. On an intuitive level it makes sense; unless you’re wealthy, you’ve undoubtedly worried about your household budget. There’s just one problem: austerity doesn’t work. In fact, it makes everything worse.
In order to understand why, Professor Mark Blyth from Brown University joins us to explain the origins of austerity, the danger it represents, and why politicians across the globe continue to try to implement it regardless of its harmful effects. Professor Blyth is the author of “Austerity: the History of a Dangerous Idea.”