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Insecurity and Poverty

Abstract

Austerity is not always one-size-fits-all; it can be a flexible, class-based strategy taking several forms depending on the political-economic forces and institutional characteristics present. This important book identifies continuity and variety in crisis-driven austerity restructuring across Canada, Denmark, Ireland and Spain. In their analysis, the authors focus on several components of austerity, including fiscal and monetary policy, budget narratives, public sector reform, labor market flexibilization, and resistance. In so doing, they uncover how austerity can be categorized into different dynamic types, and expose the economic, social, and political implications of the varieties of austerity. Identifying continuity and variety in crisis-driven austerity restructuring across Canada, Denmark, Ireland and Spain, this important book uncovers how austerity can be categorized into different dynamic types, and exposes the economic, social, and political implications of the varieties of austerity. The neoliberal era has been one of increased inequality in both income and wealth distribution. The trend started in the 1970s in the US and has been most dramatic in the North Atlantic world but is also apparent in most of Europe. An OECD report (2017) noted that income inequality in Europe had grown over several decades. In Canada, gains in income were similarly concentrated at the top of the spectrum. Between 1982 and 2015, ‘The average real pre-tax income of the top 1 per cent of tax filers more than doubled, increasing by $320,000 – but the bottom 50 per cent of tax filers did not even keep up with inflation – their real income fell by an average of $1,546’ (Osberg, 2017: 28). More generally, various scholars have made the case that the neoliberal period has been characterized by the rapid growth of transnational firms and finance, and the ongoing transfer of income and wealth to the wealthy few (see Piketty, 2014; Atkinson, 2015; Peters, 2020). As Faroohar (2016: 15) summarizes, ‘the share of financiers within the top 1 per cent of the income distribution nearly doubled between 1979 and 2005’. By this calculation, an unprecedented level of inequality was already in place when the crisis struck. While income inequality earned through bonuses, super-salaries and a dismantling of progressive income tax systems is one part of the story, wealth (and finance) is particularly implicated because, again quoting Faroohar (2016: 15): [e]ven when you consider the salaries of the modern economy’s supermanagers – the CEOs, bankers, accountants, agents, consultants, and lawyers that groups like Occupy Wall Street rail against – it’s important to remember that somewhere between 30 and 80 percent of their income is awarded not in cash but in incentive stock options and stock shares.

Authors

Whiteside H; McBride S; Evans B

Book title

Varieties of Austerity

Pagination

pp. 135-156

Publisher

Bristol University Press

Publication Date

May 3, 2021

DOI

10.56687/9781529212259-009

Labels

Sustainable Development Goals (SDG)

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