“The Austerity Process”: A new book by Clara Mattei reveals how economists paved the way for the rise of fascism and protected capitalism from its crises
The new historical and economic book entitled "Operazione austerità: Come gli economisti hanno aperto la strada al fascismo" (The austerity process: How economists paved the way for fascism) has aroused widespread interest in global intellectual and economic circles. The work was published by the prestigious Italian publishing house, Giulio Einaudi, in the “History” series“ET Storia” in five hundred and sixteen pages of medium size, and was translated by Maria Lorenza Quezara, includes a completely new introduction developed by the author to dissect contemporary reality. This investigative work presents a bold thesis that deconstructs the prevailing economic doctrine, as it proves that austerity policies were never a neutral scientific tool for resolving financial crises, but were born historically as a cornerstone to protect and defend capitalism at all costs, even if it required an alliance of liberal economists with fascist regimes.And supporting excessive authoritarian tendencies to subjugate peoples.
This work derives its exceptional sobriety and credibility from the meticulous specialization of its author, Clara Mattei, an eminent economist who has succeeded in formulating a study that combines political history with a sharp structural analysis of market mechanisms. In her book, Mattei poses a fundamental and disturbing question: What if achieving “budget balance” and reducing debt is not the real and ultimate goal of austerity policies? From this question, the author delves into the historical roots extending more thancentury, to prove that austerity is not a recent invention or an exclusive product of the neoliberal era that began at the end of the 1970s, but rather an old and systematic tactic that governments resort to to protect the capitalist system from its existential crises, and to stand in the face of labor movements and popular protests that were threatening its foundations and basic structure.The book deconstructs the three main components of the “austerity process”: fiscal austerity, monetary austerity, and industrial austerity. These policies are manifested in the sharp and systematic reduction of public spending on social welfare sectors and vital services (such as education, health, and infrastructure), the imposition of unfair regressive taxes that burden the poor classes and exclude the wealthy, and the implementation of widespread privatization of state property. In addition to this, resorting to policies of deflation, raising interest, and suppressionwages, and liberalizing the labor market from legal controls to weaken the bargaining power of workers. The book demonstrates with abundant evidence how this legislative and economic arsenal aims to reassure international creditors and investors, despite its devastating social effects and its impoverishment of societies and widening of class inequality.The shocking documentary value of the book is highlighted when observing how these economic choices paved the way for the emergence of dictatorships. Mattei reveals that the desire to protect private property and secure market stability led leading orthodox and liberal economists in the 1920s to welcome the iron fist of fascism in Mussolini's Italy. The economic elite saw dictatorship as an ideal tool to impose financial discipline, suppress labor strikes, and pass austerity policies.Which was rejected by the democratic parliament, which proves the existence of a structural and natural relationship between market liberalism and political tyranny when capitalism is exposed to a real threat from below.
The book "The Austerity Process" received very high critical praise from the world's leading economists. The famous economic thinker Thomas Piketty described it as “a necessary and imperative book to read, containing crucial key lessons for the future, and representing the finest example of what historical research can provide for political economy.” The book concludesIn its general context, he pointed out that the continued dominance of the austerity doctrine in our contemporary world requires a radical review and a deep understanding of its political origins, stressing that the battle for contemporary social liberation necessarily requires stopping the sanctification of dry budget balances, and starting to build economic models that place human dignity, basic rights, and social protection above the interest of capital accumulation and the accounts of the dominant elites.
