AthoroughinvestigationofthecurrentcombinationofausterityandextravagancethatcharacterizesgovernmentspendingandcentralbankmonetarypolicyAtthecloseofthe1970s,governmenttreasuriesandcentralbankstookavowofperpetualself-restraint.Tothisday,fiscalauthoritiesfretoversoaringpublicdebtburdens,whilecentralbankerswringtheirhandsattheslightestsignofrisingwages.Asthebriefreprieveofcoronavirusspendingmadeclear,nodeparturefromgovernmentausteritywillbetoleratedwithoutacorrespondingactofpenance.Yetwemisunderstandthescopeofneoliberalpublicfinanceifweassumeausteritytobeitssolesetting.Beyondthezero-sumgameofdirectclaimsonstatebudgetsliesarealmofindirectgovernmentspendingthatescapesthenakedeye.Capitalgainsaremultiplysubsidizedbyataxsystemthatreservesitsgreatestrewardsforfinancialassetholders.Andforallitsairsofhaughtyasceticism,theFederalReservehasbecomeadeptatfacilitatingtheinflationofassetvalueswhileruthlesslysuppressingwages.Neoliberalismisasextravagantasitisaustere,andthisparadoxneedstobegraspedifwearetochallengeitscoremodusoperandi.MelindaCooperexaminesthemajorschoolsofthoughtthathaveshapedneoliberalcommonsensearoundpublicfinance.Focusing,inparticular,onVirginiaschoolpublicchoicetheoryandsupply-sideeconomics,sheshowshowthesecurrentsproduceddistinctbutultimatelycomplementaryresponsestothecapitalistcrisisofthe1970s.WithitsintellectualrootsintheconservativeSouthernDemocratictradition,Virginiaschoolpublicchoicetheoryespousedanausteredoctrineofbudgetbalance.Thesupply-sidemovement,bycontrast,advocatedtaxcutswithoutspendingrestraintanddebtissuancewithoutguilt,inanapparentrepudiationofausterity.Yet,foralltheirdifferences,thetwoschoolsconvergedaroundtheneedtoreinintheredistributiveusesofpublicspending.Together,theydroveacounterrevolutioninpublicfinancethatdeepenedthedividebetweenrichandpoorandrevivedthefortunesofdynasticwealth.Far-reachingastheneoliberalcounterrevolutionhasbeen,Cooperstillidentifiesacounterfactualhistoryofunrealizedpossibilitiesinthecapitalistcrisisofthe1970s.Sheconcludesbyinvitingustorethinktheconceptofrevolutionandraisesthequestion:Isanotherpoliticsofextravagancepossible?
