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15 de julho de 2017


Will reversing austerity end the depression?

July 13, 2017 
Were the policies of so-called austerity the cause of the Great Recession?  If there had been no austerity would there have been no ensuing depression or stagnation in the major capitalist economies?  If so, does that mean the policies of ‘Austerian’ governments were just madness, entirely based on ideology and bad economics?
For Keynesians, the answer is ‘yes’ to all these questions.  And it is the Keynesians who dominate the thinking of the left and the labour movement as the alternative to pro-capitalist policies.  If the Keynesians are right, then the Great Recession and the ensuing Long Depression could have been avoided with sufficient ‘fiscal stimulus’ to the capitalist economy through more government spending and running budget deficits (i.e. not balancing the government books and not worrying about rising public debt levels).
That is certainly the conclusion of yet another article in the British centre-left paper, the Guardian.

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