Austrian economics frames recessions as necessary austerity after an interventionist party
Evidence
Where British New Liberals began to see recessions as ameliorable through more spending, the Austrians saw in recessions the necessary pain of austerity after the interventionist “party.” In sum, while the New Liberals and their mid-twentieth-century heirs embraced the state and intervention, the Austrians, in particular, Friedrich Hayek, Ludwig von Mises, and Joseph Schumpeter, rejected these notions entirely. — Mark Blyth, Austerity, 316
Categorization
- SEED: The ‘party/pain’ framing is the exact rhetorical mechanism modern austerity advocates borrow; a worthwhile essay angle on how hangover metaphors shape economic policy.
- XREF: connects to: The German left endorsed hard-core austerity, seeing crisis as necessary correction — Mark Blyth, Austerity: The History of a Dangerous…, 531; Austrian theory holds that government intervention, not markets, causes boom-bust cycles — Mark Blyth, Austerity: The History of a Dangerous…, 316; Austrian theory holds that government intervention prolongs recessions and triggers capital strikes — Mark Blyth, Austerity: The History of a Dangerous…, 393 (+5 more)
Broader Connections
- Austrian theory holds that government intervention prolongs recessions and triggers capital strikes
#corroborates(0.90) — Mark Blyth, Austerity, 393 - Austrian noninterventionism produces permanent rather than temporary austerity
#qualifies(0.85) — Mark Blyth, Austerity, 403 - Austrian business cycle theory blamed politics and left crisis victims unsupported
#expands(0.82) — Dieter Plehwe, Quinn Slobodian & Philip Mirowski (eds.), Nine Lives of Neoliberalism, 395 - Austerity persists as an ideology that resists empirical refutation
#expands(0.78) — Mark Blyth, Austerity, 613 - Right-wing ideology enables the recession rather than merely reflecting it
#complicates(0.75) — Hall, Stuart, Essential Essays, Volume 1, 1094 - Austrian business-cycle theory correctly describes asset bubble dynamics but offers no policy
#qualifies(0.75) — Mark Blyth, Austerity, 398