The Body Economic: Eight Experiments in Economic Recovery, from Iceland to Greece. By David Stuckler and Sanjay Basu. London: Penguin Books, 2014. 216 pp. $26.99 (cloth).The Greek word austeros is found once in the Gospels in the Parable of the Talents. It is used by the third slave who is afraid of his master and buries his talent in the ground, saying, For I feared thee, because thou art an austere man (anthropos austeros). Austerity is used in the New Testament, therefore, as a harsh treatment of others. Soon in the Christian tradition, however, it takes on more positive connotations. It comes to be viewed as a personal virtue, associated with the rigors of the ascetic life and imitation of the simplicity of Christ. Thus Thomas a Kempis would praise the austerity of the monastic ideal: Observe how many behave, who live strictly under the monastic discipline. . . . They work hard, they talk little, they keep long watches.In the Christian tradition, austerity has therefore carried this dual meaning of both virtue and vice, modesty and cruelty. David Stuckler and Sanjay Basu's brilliant little book The Body Economic is essentially concerned with the associations raised in the parable: austerity as an economic policy that manifests irrational cruelty. Recession presents two alternatives, they argue: economic stimulus or austerity. Writing from their perspective as public health researchers, they provide compelling evidence to support the claim that the only reason to choose austerity is an ideological conviction that governments should provide only minimal public services and always seek to reduce deficits. From the public health point of view, and therefore from a broader economic point of view, this makes no sense.The book comprises a series of case studies for both stimulus (1930s America, Iceland, the British welfare state) and austerity (Thailand, Russia, and most recently Greece), each of which demonstrate how carefully directed public spending on care, housing, and employment can minimize the effects of recession whereas failure to do so will have damaging and expensive consequences. The helpful concept of the fiscal multiplier is employed to differentiate between effective and ineffective public spending. Stuckler and Basu argue that, in times of recession, public spending on defense and (controversially) bank bailouts yield little public benefit, frequently taking money out of the country (they have a fiscal multiplier of less than one). In Iceland's recent economic crisis, however, the authors challenged IMF projections and demonstrated through their research that public spending in health and education had fiscal multipliers of three (that is, there is a threefold economic return in the money invested), thus stimulating recovery. …
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