Note that I label this the return of austerity politics, not economics. Although garments will be rended and dire warnings will be made, this isn’t about the economics of debt. At one level, it’s about blocking Democratic priorities. At a deeper level, it’s about kneecapping a Biden presidency before it has a chance to take off. (Disclosure: I informally advise the Biden campaign.)
This outcome must be avoided and not just because the evolving economics of fiscal debt — one of the most interesting, evolving and inherently progressive areas of economics — says so. The main reason the return of austerity politics must be resisted is its human cost.
The equation couldn’t be simpler: Austerity equals human suffering. Such suffering will not be equally distributed. It will fall on those most vulnerable to the coronavirus and the economic damage it has unleashed.
The new economics of public debt underscores the urgency of this equation. The old argument that public borrowing…