The Class Politics of Austerity

A new book by economist Clara Mattei explains why calls for governments to balance budgets and live within their means are often a thinly veiled justification for an assault on the poor.

Best Hire Chicago Career Fair As US Continuing Jobless Claims Rise To Highest Since End Of 2021

Job seekers wait in line to enter a career fair in Chicago, Illinois, on August 7, 2025. Recurring applications for unemployment benefits surged to the highest since November 2021, adding to recent signs of a weakening labor market. (Jim Vondruska / Bloomberg via Getty Images)


In 2021, the United States was confronted with a challenge that it hadn’t seen in decades: inflation. Working-class Americans were assaulted by rising costs of living, likely leading to Donald Trump’s second term in the White House. But even as American workers were struggling to afford basic necessities, blame for inflation was pinned on them.

Harvard economist and close friend of Jeffrey Epstein, Larry Summers, blamed the bout of inflation on government stimulus checks. A rare instance of the American government providing non-means-tested universal financial support and “excessive” consumer spending were decried by the mainstream as the fundamental cause of rising prices. The solution proposed by the Federal Reserve was to raise interest rates to clamp down on wages and undermine a low-unemployment labor market favorable to workers.

The economist Isabella Weber was one of the few who challenged this narrative, identifying corporations that actually set prices as the real culprits behind inflation. But she was ridiculed by mainstream economists until evidence of her position became so overwhelming that it had to be acknowledged.

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