Debtors' Prison: The Politics of Austerity Versus Possibility
Kuttner, entrepreneur, editor, and columnist, declares, “Today, in the aftermath of collapse, we need . . . more public borrowing to jump-start a depressed private economy.” Yet our current public debate has been about less public investment, not more, and the author laments the widely held view that “in a deep slump the main goal of fiscal policy should be austerity.” The author sets out to address the current crisis and the history of debt and debt relief, hoping to bring clarity to the dynamics of austerity and the debates about historical debt relief and to consider alternatives. To move forward, Kuttner offers his basic principles, including, in the U.S., reducing principal and refinancing underwater mortgages, restoring the Glass-Steagall Act, and breaking up the largest banks. In Europe, he recommends moving from austerity to debt relief and new investment by giving the European Central Bank the U.S. Federal Reserve’s powers and then acting on them. This timely, thought-provoking book will add valuable insight to ongoing fiscal-policy debates. --Mary Whaley