Dillon Wamsley in Phenomenal World:
In the aftermath of 2008, the pace at which capitalist states moved from bailouts and stimulus policies to fiscal belt tightening was jarring. No less striking was the shift in the intellectual framework deployed to make sense of it. While in the heady days of 2008, sales of Capital exploded and headlines like “What would Marx say?” appeared in the pages of The Economist, the restoration of the status quo ante under the umbrella of post-crisis austerity saw the revival of a different historical figure. To explain the rapid shift from bailouts to fiscal consolidation, academics and center-left intellectuals turned to Keynes. Indeed, much of the literature on the politics of austerity and capitalist crisis took up Keynes’s maxim that it was the intellectual influence of defunct economists and academic scribblers, the “gradual encroachment ideas,” not vested interests, that explained the dramatic about-face from stimulus to austerity. From Obama’s Simpson-Bowles Commission to the EU “sovereign debt” crisis, the resumption of austerity politics after 2008 is best understood as a case of bait and switch. Armed with the edicts of neoclassical theory, politicians and policymakers were able to obscure the true causes of the crisis and shift responsibility onto bloated public sectors and dependent welfare recipients. Deploying Keynes’s paradox of thrift, critics exposed the counterproductive effects of austerity measures implemented amidst an historic recession.
Given such conspicuous failures to generate growth, how can we account for the political longevity of austerity throughout the 2010s? Some analysts explained austerity’s continued power by reference to the “zombie ideas” propagated by the neoclassical canon, as well as the misleading equivalencies drawn between household and national budgets commonplace after 2010. Missing from these explanations, however, was adequate consideration of class and the balance of political forces after 2008.
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