The 2008 TARP bank bailout is a trigger of the austerity path that followed
Evidence
In one sense—and leaving behind the Mother of All Moral Hazard Trades that was the generator of the European side of the crisis—the trigger for all of this was a classic case of good intentions gone bad. While the US financial system was, as we saw in chapter 2, an accident waiting to happen, what brought us down the particular path we find ourselves stuck on now was the decision to bail out the banks, starting with the US TARP program, in 2008. — Mark Blyth, Austerity, 618
Categorization
- XREF: Connects to the broader crisis-to-austerity causal chain in the austerity literature. — connects to: Post-2008 bailouts continued the austerity pattern of shifting resources to the few — Clara E. Mattei, The Capital Order: How Economists…, 1598; The 2008 crisis replaced triumphalist free-market rhetoric with open-ended austerity — Max Haiven, Cultures of Financialization, 158; The 2008 crisis pushed whole nations toward bankruptcy and austerity (+5 more)
Broader Connections
- Post-2008 bailouts continued the austerity pattern of shifting resources to the few
#corroborates(0.85) — Clara E. Mattei, The Capital Order, 1598 - The 2009 bailout rescued bankers while imposing austerity on workers
#corroborates(0.85) — Yanis Varoufakis, Technofeudalism, 391 - The 2008 crisis pushed whole nations toward bankruptcy and austerity
#corroborates(0.80) - Bank bailouts and collapsing tax revenue, not stimulus spending, drove post-2008 debt growth
#expands(0.80) — Mark Blyth, Austerity, 140 - The 2008 crisis replaced triumphalist free-market rhetoric with open-ended austerity
#corroborates(0.75) — Max Haiven, Cultures of Financialization, 158 - Austerity is state intervention that transfers resources from workers to capital
#expands(0.75) — Clara E. Mattei, Escape from Capitalism, 195 - Austerity is state intervention transferring resources from the many to the few
#expands(0.75) — Clara E. Mattei, Escape from Capitalism, 195 - Letting banks fail produced better outcomes than bailouts in 2008
#qualifies(0.70) — Mark Blyth, Austerity, 622