Show Notes
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#interwarausterity #capitalorder #economictechnocracy #labordiscipline #austerityandfascism #TheCapitalOrder
The Capital Order: How Economists Invented Austerity and Paved the Way to Fascism is a work of political economy and economic history by Clara E. Mattei. Published by the University of Chicago Press, it examines the emergence of modern austerity in the aftermath of World War I, focusing especially on Britain and Italy during the interwar years. Mattei challenges the conventional view that austerity is mainly a neutral response to fiscal crisis or public debt. Instead, she argues that austerity developed as a political strategy to defend capitalism at a moment when labor movements, democratic experiments, and demands for economic self-government threatened existing relations of power. The book combines intellectual history, archival research, and institutional analysis to show how economists, central bankers, and policymakers helped present wage cuts, public spending restraint, and monetary discipline as technical necessities. Its purpose is not only historical but interpretive: it asks readers to reconsider austerity as a mechanism for restoring hierarchy rather than merely balancing budgets.