European austerity’s doom loop discredited center-left parties while US growth held

Evidence

Although the 2008 crisis initially took off in the United States, its fallout quickly reached Europe, toppling private banks that had engaged in risky overseas lending and now began to appeal to governments for help. With liquidity bound up in their banking sector, several European countries opted for draconian austerity measures that decimated their public sectors. In the United States, the effects of crisis-fighting pushed a generation into debt dependency and low wages, and yet growth rates did not implode. In Southern Europe and the UK, however, a doom loop between private and public balance sheets drove the economy further downhill and discredited ruling center-left parties. — Arthur Borriello and Anton Jäger, The Populist Moment, 25

Categorization

• recurring: this claim recurs 2 times within its source
• XREF: connects to: Post-2008 austerity discredited center-left parties and radicalized a generation into populism — Arthur Borriello and Anton Jäger, The Populist Moment: The Left After the…, 25; Center-left parties’ embrace of austerity fueled the European populist upsurge — Arthur Borriello and Anton Jäger, The Populist Moment: The Left After the…, 111