How does austerity politics weaken democracy?

Since the introduction of neoliberal policies under Thatcher and Reagan many countries worldwide have implemented austerity politics that dismantled social security programs by cutting public funding. Our guest today, the renowned British economist, Lord Skidelsky has argued that liberal democracy rests on a welfare state, so that austerity politics and the rise of populism in the West are interlinked. So this time we ask: can liberal democracy co-exist with a politics austerity?Democracy in Question? is brought to you by:• The Institute for Human Sciences in Vienna: IWM• The Albert Hirschman Centre on Democracy in Geneva: AHCD• The Excellence Chair and Soft Authoritarianism Research Group in Bremen: WOC• The Podcast Company Earshot StrategiesFollow us on social media!• Institute for Human Sciences in Vienna: @IWM_Vienna• Albert Hirschman Centre on Democracy in Geneva: @AHDCentreSubscribe to the show. If you enjoyed what you listened to, you can support us by leaving a review and sharing our podcast in your networks!BIBLIOGRAPHY• Money and Government: A challenge to mainstream economics. (2018).• Austerity vs Stimulus: The Political Future of Economic Recovery. (2017).• How Much is Enough? Money and the Good Life. (2012). Co-authored with Edward Skidelsky• Click here to find more of Robert Skidelsky’s books and publications.GLOSSARYWhat is austerity politics?(00:01:00 or p. 1 in the transcript)Austerity describes a set of economic policies, usually consisting of tax increases, spending cuts, or a combination of the two, used by governments to reduce budget deficits. The use of austerity measures during times of economic hardship has caused much controversy about their purpose and usefulness. Learn more.What is neoliberalism?(00:03:30 or p. 3 in the transcript)The term neoliberalism describes an ideology and policy model that emphasizes the value of free market competition. Although there is considerable debate as to the defining features of neoliberal thought and practice, it is most commonly associated with laissez-faire economics. In particular, neoliberalism is often characterized in terms of its belief in sustained economic growth as the means to achieve human progress, its emphasis on minimal state intervention in economic and social affairs, and its commitment to the freedom of trade and capital. Source.What is Thatcherism?(00:03:30 or p. 3 in the transcript)The term refers to Great Britain’s former Prime Minister Margaret Thatcher's policies during the 1980s. Thatcherism represents a belief in free markets and a small state, and includes the idea that industries and services should be owned by private companies, not by the state. Learn more.What is hyperglobalization?(00:03:30 or p. 3 in the transcript)The term hyperglobalization refers to the drastic increase in globalization since the 1990s.What are Keynesian economics?(00:08:30 or p. 6 in the transcript)Keynesianism refers to the economic theories and programs ascribed to John M. Keynes and his followers, especially the advocacy of monetary and fiscal programs by government to increase employment and spending. Source.What happened in the US in the 1930s?(00:21:30 or p. 13 in the transcript)Between 1933 and 1939 (so, after the Great Depression which was a major economic crisis in 1929) then U.S. President Franklin D. Roosevelt enacted the New Deal, a set of programs, reforms, and regulations with the aim of bringing immediate economic relief. Opposed to the traditional American political philosophy of laissez-faire, the New Deal generally embraced the concept of a government-regulated economy aimed at achieving a balance between conflicting economic interests. Source.What happened under Deng Xiaoping?(00:21:30 or p. 13 in the transcript)Deng Xiaoping was a Chinese communist leader who was the most powerful figure in the People’s Republic of China from the late 1970s until his death in 1997. He abandoned many communist doctrines and attempted to incorporate elements of the free-enterprise system into the Chinese economy.Under his leadership, China acquired a rapidly growing economy, rising standards of living, considerably expanded personal and cultural freedoms, and growing ties to the world economy. Deng also left in place a mildly authoritarian government that remained committed to the one-party rule even while it relied on free-market mechanisms to transform China economically. Source. Learn more.