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🪵 The Threshold

Conservatives abandoned austerity as an intellectual argument once Keynesianism triumphed

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tagsja-picks, xref, causal_relationships, trade, singleton, category/causal-relationships

2 min read

Conservatives abandoned austerity as an intellectual argument once Keynesianism triumphed

Evidence

With the Keynesian view ascendant, conservatives like Schumpeter had a choice: admit that they were wrong (or at least accommodate themselves to the new ideas that seemed to fit the facts better than the old ones) or find something else to talk about. Schumpeter chose the latter path, and so he spoke about the death of saving, the end of family virtue, and the triumph of bureaucracy. His own retreat was emblematic of the retreat of austerity as a serious intellectual argument among the economic mainstream of Anglo-American countries. — Mark Blyth, Austerity, 352

Categorization

  • XREF: Connects to Mattei’s treatment of austerity’s intellectual lineage and the partisan revival of austerity economics later in the 20th century. — connects to: Keynesianism displaced austerity because it explained normal times, not just slumps — Mark Blyth, Austerity: The History of a Dangerous…, 340; Austerity thinking retreated into moralizing by the mid-1940s rather than engaging Keynes. — Mark Blyth, Austerity: The History of a Dangerous…, 348; Broader neoliberal shifts enabled austerity’s return to economic common sense — Mark Blyth, Austerity: The History of a Dangerous…, 406 (+5 more)

Broader Connections

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