
Contents
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Introduction Introduction
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The effectiveness of austerity policies The effectiveness of austerity policies
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Industrial investment, innovation and public spending Industrial investment, innovation and public spending
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The role of the public sector The role of the public sector
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Reform of financial markets Reform of financial markets
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Reconstruction of public services Reconstruction of public services
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Resources for public investment Resources for public investment
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The decline of corporate tax rates The decline of corporate tax rates
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Tax evasion Tax evasion
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Debt reduction Debt reduction
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Redistribution of national income Redistribution of national income
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More stringent controls on the corporate sector More stringent controls on the corporate sector
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Corporate cash hoarding Corporate cash hoarding
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The need for international cooperation The need for international cooperation
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Conclusion Conclusion
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References References
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Five Alternatives to austerity
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Published:September 2015
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Abstract
The chapter challenges the effectiveness of austerity policies, discusses alternative strategies for industrial investment, innovation and public spending and the benefits of radical change in the economy. A brief assessment of austerity policies identifies the decline in investment, loss of economic output, and the effect of deep public spending cuts, mass unemployment and wage cuts and lack of sustainable growth. Alternative plans emphasize the vital role of the public sector in innovation and investment to maximise macro economic benefits. Continued reform of financial markets is considered essential together with the reconstruction of public services to radically improve their sustainability, equity and quality. The redistribution of national income by terminating financialisation and privatisation alongside more stringent controls in the corporate sector are other key reforms. These policies would ensure a sustainable recovery, help to minimise the occurrence and impact of future financial crises, tackle widening inequalities and develop more sustainable models of economic development.
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