The Watson Institute at Brown University presents Mark Blyth on Austerity

Directed by Joe Posner

Produced by

Mark Blyth is a professor of International Political Economy at Brown University and faculty fellow at its Watson Institute for International Studies. He is writing "Austerity: The History of a Dangerous Idea," forthcoming from Oxford University Press in 2011.

[johnchristmas]

Great video!  I am just starting the book today.  I see this video is more from a UK/USA perspective,  about governments that spend most money on services.  My interest is more in Eastern Europe, where governments spend half on services and give half to corrupt oligarchs.  "Austerity" in Eastern Europe (so far) means cutting the services without cutting the oligarch gifts.

[gmartens]

Excellent! It deserves to becoming common sense. When will it happen?

[MultiRand]

He does not make a mistake in logic. His point is that the Fallacy of Composition, the belief that what is good for the part is good for the whole, lies behind a lot of austerity thinking. The presenter notes that it certainly makes sense for any one sector of the economy to leverage down debt. But if all the sectors of the economy start leveraging down debt at the same time it leads to a general contraction of economic activity and a prolonged and worsening recession.

[JeanEveleigh]

Great video. The Democratic Reform Party is planning a film festival on economics, environmentalism and politics - we would very much like to show this as part of our shorts collection.

[bigalicat]

I'd be interested to know what Mark's views on the correct step forward are? I don't mean an end game position I mean what tomorrow would he like to see happen in the global political economy (however that translates as action globally domestically locally etc) and why. Also are we essentially seeing a mix of pre Monetarism forms of state intervention, mixed with the neoliberal domestic prerogatives of maximising domestic diversity for the international market ?

[istraight]

"By the way the FED is a government supported monopoly." There was monopolies before the federal reserve for example standard oil & Railroad companies.

[istraight]

"If you do not pay taxes(rent) the State takes it from you. What do you really support?" There was a city in the USA which video from a person lived out city limits had to pay about $100 a month or year which i forgot. Due to they refused to pay there dues, house went on fire and fire department did not responed due to did not pay there dues.

[munkyusm]

@farvision Your understanding is the mainstream media understanding: It was business's fault. Yes, business screwed up, but if we let them collapse, then they learn their lesson. This is fundamental in a free market. Bad decisions have to be punished. This goes for corporations or individuals. People don't learn a damn thing if there is no consequence for their actions.

[McZelAir]

Great video I really enjoyed your book

[ZaraArthurJames]

We need more videos like this that can explain issues in a way that an Average Joe can understand. The Republicans are "simpler" because they are anti-tax, which is commonly appreciated by many Americans. Democrats needs to be able to explain their big ideas in a simpler way. Until that happens, much of that bottom 40% will vote against their own good.

[cskipper]

Government helps to limit the ability of those to compete and produce with big companies. Keeping the top at the top with less competition.

[keithfaecorstorphine]

Listen again, you obviously were'nt following his talk. He's spot on.

[TagamiTKO]

I always like the meme about government efficiency. Sometimes the point of government is not to do things cheap and frugal but robustly and with great care.

Slashing gov services and then claiming that it's an attempt to lean up spending is riddled with false virtue.

[istraight]

"Social liberals are collectivists using state coercion. Libertarians are individualist that participate freely in society according to individual rights" Yes in the economic stance to certain extent as they would want more of progressive taxation. The Boston Tea Party is the best example of what liberal would want. In social value liberals would be individualism that said you openly free to think & as please as long does hurt other people.

[cskipper]

Federal government protecting the %40 is a myth. You either have to be a business owner to understand this or have come from a socialist society. I am a business owner and my brother in law came from Russia. His assessment of what we are doing is very similar to what he left 15 years ago. Socialism is a well intended idea that only works in individual house holds. When you take it to the Macro level it can become very oppressive. I think we agree more than I am leading on.

[keithfaecorstorphine]

Nice presentation. It is so true of what's happening in the UK right now. The government have hit the most needy... the disabled, the unemployed, the low waged. They are playing a nasty game of appeasing the middle classes by reducing the mortgage rates to -0% while hitting those in social housing with all forms of increases and reductions in benefits. So while being seen to aid the middle and upper classes, the real working class get kicked in the balls yet again.

[istraight]

Paul Weyrich was another honest conservative as he did not believe that everyone should vote due to if more people vote the people will vote left wing.

[Tyler]

Marginal tax rates are not even close to the only factor in people's decision about where to live. And Even if the top rate were raised to 40%, they would still have lower rates (especially considering capital gains) than most anywhere else in the developed world. The top rate in France is 70%, and they still don't have the 'mass exodus' of rich people you are irrationally afraid of.

[cskipper]

Did I say not to pay taxes? No, sales tax is fine. Property tax, income tax are not. Infact we did fine without it up until 1913.

[istraight]

"Status quo I think you may be in support of is SS, income tax, property tax etc." That is not status quo as SS, income tax & property tax. The status quo would be letting corporations do whatever they want in the beginning of industrial revolution. Under liberalism great things have happen like constitutionalism, liberal democracy, free and fair elections, human rights, capitalism (the left has abounded since industrial revolution), and the free exercise of religion.