Austerity: The Great Failure

In times of economic crisis austerity becomes a rallying cry, but what does history tell us about its chances for success?

Austerity is at the center of political debates today. Its defenders praise it as a panacea that will prepare the ground for future growth and stability. Critics insist it will precipitate a vicious cycle of economic decline, possibly leading to political collapse. But the notion that abstinence from consumption brings benefits to states, societies, or individuals is ha...