Neoliberal Austerity Doctrine Leads to Deeper Crisis
by Atila Kilic, 11/8/2013
A high state share in the economy, developed social states, and readiness to intervene actively and anti-cyclically prevent falling into a depression.
In neoclassicism, high public indebtedness was said to cause trifling economic growth. The causality actually runs in the other direction. Trifling economic growth triggers high public indebtedness. Reducing state spending was said to encourage private spending. Reality turns out very different.
Trump’s demonizing regulation Medicaid, public schools, Head Start, Meals on Wheels, WIC food assistance, taxation, and democracy must be resisted. Public policy is different than a wrecking ball or a sledgehammer as democracy is different than following autocratic orders.