One of our foremost economic thinkers challenges a cherished tenet of today’s financial orthodoxy: that spending less, refusing to forgive debt, and shrinking government—“austerity”—is the solution to a persisting economic crisis like ours or Europe’s, now in its fifth year. Since the collapse of September 2008, the conversation about economic recovery has centered on the question of debt: whether we have too much of it, whose debt to forgive, and how to cut the deficit. These questions dominated the sound bites of the 2012 U.S. presidential election, the fiscal-cliff debates, and the perverse policies of the European Union. Robert Kuttner makes the most powerful argument to date that these are the wrong questions and that austerity is the wrong answer. Blending economics with historical contrasts of effective debt relief and punitive debt enforcement, he makes clear that universal belt-tightening, as a prescription for recession, defies economic logic. And while the public debt gets most of the attention, it is private debts that crashed the economy and are sandbagging the recovery—mortgages, student loans, consumer borrowing to make up for lagging wages, speculative shortfalls incurred by banks. As Kuttner observes, corporations get to use bankruptcy to walk away from debts. Homeowners and small nations don’t. Thus, we need more public borrowing and investment to revive a depressed economy, and more forgiveness and reform of the overhang of past debts. In making his case, Kuttner uncovers the double standards in the politics of debt, from Robinson Crusoe author Daniel Defoe’s campaign for debt forgiveness in the seventeenth century to the two world wars and Bretton Woods. Just as debtors’ prisons once prevented individuals from surmounting their debts and resuming productive life, austerity measures shackle, rather than restore, economic growth—as the weight of past debt crushes the economy’s future potential. Above all, Kuttner shows how austerity serves only the interest of creditors—the very bankers and financial elites whose actions precipitated the collapse. Lucid, authoritative, provocative—a book that will shape the economic conversation and the search for new solutions.

Debtors’ prisons might sound like something out of a Dickens novel, but what most Americans do not realize is that they are alive and well in a new and startling form. Today more than 20 percent of the prison population is incarcerated for financial reasons such as failing to pay a fine. This alarming trend not only affects the poor, who are hit particularly hard, but also ensnares the millions of self-identified middle-class people who are struggling to make ends meet. All across the country people are being fined and even imprisoned for offenses as small as delinquency on student debt or an unpaid parking ticket. However, there is an insidious undercurrent to these practices that the average person might not realize. Many counties depend on a steady supply of citizens to pay fines and court costs in order to make their budgets. Minor vehicle infractions, by design, can rack up hundreds of dollars in charges that go straight to the city’s coffers. Combine this with the fact that many middle-class people cannot handle an unexpected $400 expense and the general lack of awareness about the risk for being repeatedly jailed for failure to pay court costs, probation, and even per day charges for being in jail and you get an endless cycle of men and women either in debt or in prison for debt. While shocking to some, this system makes up today’s debtors’ prisons. In The New Debtors’ Prison, Christopher Maselli draws from his personal knowledge of the criminal justice system based on his experience on both sides of the prison walls as an attorney as well as a former inmate, to take a hard look at our modern prison system that systematically targets the poor and vulnerable of our society in order to fund the prison-industrial complex.

For Londoners of the eighteenth and nineteenth centuries, debt was a part of everyday life. But when your creditors lost their patience, you might be thrown into one of the capital’s most notorious jails: the Marshalsea Debtors’ Prison. In Mansions of Misery, acclaimed chronicler of the capital Jerry White introduces us to the Marshalsea’s unfortunate prisoners – rich and poor; men and women; spongers, fraudsters and innocents. We get to know the trumpeter John Grano who wined and dined with the prison governor and continued to compose music whilst other prisoners were tortured and starved to death. We meet the bare-knuckle fighter known as the Bold Smuggler, who fell on hard times after being beaten by the Chelsea Snob. And then there’s Joshua Reeve Lowe, who saved Queen Victoria from assassination in Hyde Park in 1820, but whose heroism couldn’t save him from the Marshalsea. Told through these extraordinary lives, Mansions of Misery gives us a fascinating and unforgettable cross-section of London life from the early 1700s to the 1840s.

Introduction : From deadbeat to deadbroke -- Making men pay -- The debt of imprisonment -- Punishing parents, creating criminals -- The imprisonment of debt -- The good, the bad, and the dead broke -- Cyclical parenting -- Conclusion : Reforming debt, reimagining fatherhood -- Appendix : about the research.

Debt was an inescapable fact of life in early America. At the beginning of the eighteenth century, its sinfulness was preached by ministers and the right to imprison debtors was unquestioned. By 1800, imprisonment for debt was under attack and insolvency was no longer seen as a moral failure, merely an economic setback. In Republic of Debtors, authorBruce H. Mann illuminates this crucial transformation in early American society.

Americans now depend more heavily upon credit than any other society on Earth, or any other time in history. Borrowing has become a way of life for millions of families, and it is hard to imagine a time when charge accounts did not exist. Nonetheless, it would be a mistake to assume that, because a wallet filled with plastic instead of cash is a relatively new phenomenon, Americans have not been borrowers and lenders since the colonization of the New World. Author Peter J. Coleman proves otherwise. In one Form or another -- notes of hand, book credit, commercial paper, mortgages, land contracts -- settlers borrowed to pay their passage from Europe, to buy and clear land, to build and operate mills, to purchase slaves, and to gamble and drink. Debtors' prison awaited those who could not pay their debts, and a pauper's grave received the unfortunate who lacked the private means to feed and clothe himself in prison. While the debtors' prisons described in this book no longer exist, the author maintains that our credit-oriented society has yet to devise cheap, efficient, equitable, and humane methods of enforcing contracts for debt.

Text by Lewis Warsh. Images by Julie Harrison.