Was Austerity Responsible for the American Revolution?

In The New York Review of Books, Steve Pincus argues that George III’s austerity policies were responsible for the Revolution. He writes,

“Today, we tend to regard the practice of using government spending to stimulate economic growth as an invention of John Maynard Keynes in the 1930s. But already in the eighteenth century, self-styled Patriots, followers of Pitt on both sides of the Atlantic, argued that what the British Empire needed if it was to recover from the fiscal crisis was not austerity but an economic stimulus. In the midst of the crisis one journalist wrote that Pitt and the Patriots believed that the burgeoning debt could be reduced by increasing ‘the national stock,’ or Gross National Product, whereas Prime Minister Grenville believed ‘that an hundred and forty millions of debt is to be paid by saving of pence and farthings.’” To read the entire article go here:

1776: The Revolt Against Austerity by Steve Pincus | NYRblog | The New York Review of Books.

Lewis Walpole Library, Farmington, Connecticut Detail from The Great Financier, or British Economy for the Years 1763, 1764, 1765, showing British Prime Minister George Grenville holding a balance in which debt outweighs savings, 1765

Lewis Walpole Library, Farmington, Connecticut
“Detail from The Great Financier, or British Economy for the Years 1763, 1764, 1765, showing British Prime Minister George Grenville holding a balance in which debt outweighs savings, 1765”

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