Did Austerity Ruin Britain's Economy? | ft. Dr. Jo Michell

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Guest: Dr. Jo Michell (UWE Bristol)
Host: Dr. Joeri Schasfoort

[maxbardsley]

These interviews of researchers are have so far surprised me with how good they are. You're making it clear the difference it makes when there's an interviewer who has expertise in the field and knows how to read and do some analysis of the research papers of the guests they interview. I hope more are in coming.

[valipunctro]

Not a Brit, but it seems to me that cutting funding to education is a pretty sure fire way to dig yourself into a bigger hole.
I don't know if the Brits did that but it probably did happen in some places after the financial crisis.

[xHomu]

You know things are bad when the Economists end things on a "positive note" by reminding you to hug your children.

[rungus]

I'm no economist, but I get the impression that austerity creates debt for the future because 1/ government spending is how we invest in the future economy by getting money moving through the economy, creating jobs; 2/ the 'a stitch in time saves nine' principle, where the longer you avoid paying for something, the more expensive it becomes, like healthcare spending, where it's cheaper to fix a problem now rather than to let it get worse later; and 3/ some types of spending create a healthier and more productive workforce, so investing in healthcare and education very quickly pays for itself.

[Netherminded]

One question left out of this interview is the political acceptability of non-austerity driven economic policies. I have a strong sense that the post-2008 trend of low government spending amid low-interest rates will come to be regarded as a massive error and missed opportunity. The conversation here seems to presume that politicians lead economic policy, but it's not that simple. The 1980s introduced a vocabulary of economics in Thatcherism, Reagonomics (also Rogernomics as it was known herein NZ) continues to structure public discourse and understanding of macroeconomic questions to this day.

When the language through which the general public access and understand economic matters is heavily predisposed towards austerity policies, how possible was it for alternatives to have been chosen? Despite the failure of these policies to deliver on promises of prosperity in the UK, they have had continuous conservative government ever since the financial crash. I would find it incredibly interesting to see it examined more closely why British and other national electorates haven't rejected a set of policies, ideas, and language that has continuously failed to deliver for more than a decade.

[rungus]

That joke where Labour left a note that there's no money left is a tradition that goes back decades, back to the time of Churchill. It was just the traditional thing to do, but the Tories pretended to be offended by it in order to score points.

[samgrainger]

Imagine divesting from having a healthy, educated, mobile, productive population.

[dumdumbrown]

OMG — I was just thinking about how terrible European internet must be to show a frame rate that bad, and Jouri said it 😆 great video and solid points in the interview …luvvit! Australia has the same socio-economic stagnancy/low wage growth/zero interest rate/austere public benefits/inflationary housing (asset) bubble problem that the UK has and so I left Australia for the US because taxes are lower, there actually is an economy and you’re recognised/paid for your skills here. Completely agree with Dr Michell + great points summarised by Jouri 👌🏽 excellent!

[christofthedead]

Interesting creative choice to use stop-motion animation for an interview. Excellent voice acting & character design 😉

[BigHenFor]

The proportion of GDP paid to workers has declined year-on-year for more thab a decade. And perhaps having an economy based on services, but limiting the growth of knowledge workers by commodifying education creates inefficient incentives?

[ericaceous]

The UK feels like a very grim place to be. Feel somewhat lucky to have been finishing school just as austerity was implemented.

But nowadays - there's sewage in our rivers, food banks and strikes, a flatlining NHS, corruption in parliament, MPs who won't even attend parliament, right wing conspiracists on the TV, fascist rhetoric around immigration, new oil and gas licences instead of renewable investment, Murdoch et al trying to tear down the BBC, non-dom billionaires chortling about while young people try to scrape together enough money to pay the rent, let alone own a home. Could go on.

I've voted against Tories and their policies since I could vote, voted against Brexit, all to little avail. The cognitive dissonance I feel at being so opposed to all these terrible goings on yet having to just live through them is really getting to me.

On a national level, I feel like there's almost nothing to be proud of and little to feel hopeful about.

[turkelkarimli]

Great talk thank you. One question/observation on the proposal for austerity via taxes on ''yachts'' - as in those at the top..I think we are underestimating marginal propensity of consumption. Higher wealth/income households are already spending a significantly smaller % of their income. Higher taxes will have a dent on their wealth but not necessarily their spending patterns. If we want to make austerity work via taxes, reality is that they would need to be imposed on middle class at the minimum. In other words, those paying for higher mortgages due to interest rate rises, may now simply get less money/disposable income after tax.

[imbarmstrong]

Very interesting podcast this one shining a light on the origins of our current problems here in the UK

[debbiegilmour]

That point at 10:40! I remember it well. Understanding economics as I do now, I realise that such a note is meaningless. The government doesn't just 'run out of money'.

One has to question the competence of the tories if they really believed that, though I don't think they do. I think they are more ideologically driven.

[jonathanevans]

Absolutely incredible interview. Enjoyed every second of it.

[AmySavage]

That Cameron/Osbourne script about austerity being unavoidable and punishing the poor and weak being the only way has been parroted by Petteri Orpo word for word. Finland is taking the same direction despite the results in UK being bad.
I'm certain that austerity (in the layman sense) has become ideologically motivated rather than economically reasoned.

[konormccracken]

When's the conversation with Mark Blyth?

[Phlxable]

30:15 What a horrible answer. Austerity can *never* be good? Government spending is *always* good? How absurd.

[Mrnewkrakbo]

Austerity measures were applied to the fps

[phantomcreamer]

I felt like that was a rather weak answer to when austerity is good. He talked about how china failed and people were once encouraged to save in the US.