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Why Austerity? The Mass Politics of a Contested Policy

Author

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  • BANSAK, KIRK
  • BECHTEL, MICHAEL M.
  • MARGALIT, YOTAM

Abstract

The effects of austerity in response to financial crises are widely contested and assumed to cause significant electoral backlash. Nonetheless, governments routinely adopt austerity when confronting economic downturns and swelling deficits. We explore this puzzle by distinguishing public acceptance of austerity as a general approach and support for specific austerity packages. Using original survey data from five European countries, we show that austerity is in fact the preferred response among most voters. We develop potential explanations for this surprising preference and demonstrate the empirical limitations of accounts centered on economic interests or an intuitive framing advantage. Instead, we show that the preference for austerity is highly sensitive to its political backers and precise composition of spending cuts and tax hikes. Using a novel approach to estimate support for historical austerity programs, we contend that governments’ strategic crafting of policy packages is a key factor underlying the support for austerity.

Suggested Citation

  • Bansak, Kirk & Bechtel, Michael M. & Margalit, Yotam, 2021. "Why Austerity? The Mass Politics of a Contested Policy," American Political Science Review, Cambridge University Press, vol. 115(2), pages 486-505, May.
  • Handle: RePEc:cup:apsrev:v:115:y:2021:i:2:p:486-505_10
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    Cited by:

    1. Ketchley, Neil & Eibl, Ferdinand & Gunning, Jeroen, 2023. "Anti-austerity riots in late developing states: evidence from the 1977 Egyptian Bread Intifada," LSE Research Online Documents on Economics 119831, London School of Economics and Political Science, LSE Library.
    2. Lax-Martinez, Gema & Rohner, Dominic & Saia, Alessandro, 2022. "Threat of taxation, stagnation and social unrest: Evidence from 19th century sicily," Journal of Economic Behavior & Organization, Elsevier, vol. 202(C), pages 361-371.
    3. Kantorowicz, Jaroslaw & Collewet, Marion & DiGiuseppe, Matthew & Vrijburg, Hendrik, 2024. "How to finance green investments? The role of public debt," Energy Policy, Elsevier, vol. 184(C).
    4. DiGiuseppe, Matthew & Del Ponte, Alessandro, 2023. "Bottom-Up Sovereign Debt Preferences," SocArXiv wxr67, Center for Open Science.
    5. Nora Bearth & Michael Lechner, 2024. "Causal Machine Learning for Moderation Effects," Papers 2401.08290, arXiv.org, revised Apr 2024.
    6. David J. Hebert & Michael D. Curry, 2022. "Optimal lockdowns," Public Choice, Springer, vol. 193(3), pages 263-274, December.
    7. Kyung Suk Lee & Kirby Goidel & Clifford Young, 2023. "The system is broken: Can we have some more?," Social Science Quarterly, Southwestern Social Science Association, vol. 104(1), pages 39-53, January.
    8. Alpino, Matteo & Asatryan, Zareh & Blesse, Sebastian & Wehrhöfer, Nils, 2022. "Austerity and distributional policy," Journal of Monetary Economics, Elsevier, vol. 131(C), pages 112-127.
    9. Markus Eller & Branimir Jovanovic & Thomas Scheiber, 2021. "What do people in CESEE think about public debt?," Focus on European Economic Integration, Oesterreichische Nationalbank (Austrian Central Bank), issue Q3/21, pages 35-58.
    10. Bremer, Björn & Bürgisser, Reto, 2022. "Lower Taxes At All Costs? Evidence from a Survey Experiment in Four European Countries," SocArXiv e6ds9, Center for Open Science.
    11. Carmignani, Fabrizio, 2022. "The electoral fiscal multiplier," Economic Analysis and Policy, Elsevier, vol. 76(C), pages 938-945.
    12. Jaroslaw Kantorowicz, 2023. "Testing public reaction to constitutional fiscal rules violations," Constitutional Political Economy, Springer, vol. 34(4), pages 483-509, December.
    13. Ardanaz, Martín & Hübscher, Evelyne & Keefer, Philip & Sattler, Thomas, 2024. "Voter Responses to Fiscal Crisis: New Evidence on Preferences for Fiscal Adjustment in Emerging Markets," IDB Publications (Working Papers) 13473, Inter-American Development Bank.
    14. Bansak, Kirk & Paulson, Elisabeth, 2023. "Public Opinion on Fairness and Efficiency for Algorithmic and Human Decision-Makers," OSF Preprints pghmx, Center for Open Science.
    15. Goes, Iasmin & Kaplan, Stephen B., 2024. "Crude credit: The political economy of natural resource booms and sovereign debt management," World Development, Elsevier, vol. 180(C).

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