Introduction: debt, deficits and austerity -- We must live within our means -- Governments must balance their books -- We must tighten our belts -- Never go into debt -- Taxes are a burden -- Austerity: there is no alternative -- Always an alternative.
Summary:
Governments should spend no more than their tax income.' Most people in Europe and North America accept this statement as simple common sense. It matches the deeply engrained economic metaphors that dominate public discourse, from 'living within your means' to 'balancing the budget' - all necessary, or so conventional wisdom holds, to avoid the dangers of debt, taxation and financial ruin. This book shows how these homely metaphors constitute the 'debt delusion' a set of plausible-sounding yet false ideas that have been used to justify damaging austerity policies. John Weeks debunks these myths, explaining both the true story behind public spending, taxation, and debt, and the real function of these in the management of our economies. He demonstrates that disputes about public finances are not primarily technical matters best left to specialists and experts, as many politicians would have us believe, but rather fundamentally questions about our true political priorities. Requiring no prior economic knowledge, this is an ideal primer for anyone wishing to cut through the rhetoric and misinformation that dominate political debates on economics and become an informed citizen.
This resource is supported by the Institute of Museum and Library Services under the provisions of the Library Services and Technology Act as administered by State Library of Iowa.