The government may try to put a positive spin on the economy and claim that economic growth is increasing but James Meadway has shown this is a flawed assessment. In any case, growth since 2008 has continued to be debt-driven, producing a false prosperity and a financial bubble which will only get worse.While bankers continue to pay themselves million-pound bonuses, working people are still working harder for less and falling back on credit to make ends meet.

This debt fuelled economy, or ‘Creditocracy’ is the subject of Andrew Ross’s book. Ross is an academic and activist in the USA who has been involved in debt resistance initiatives arising out of the Occupy Wall Street movement. In Ross’s view the USA is currently a ‘full blown creditocracy’ (p.11), which is his definition of liberal democracy coupled with a heavily financialised economy, where the costs of social goods such as education, health and social care are debt financed.As more responsibility for welfare is privatized and falls to individuals, private debt financing becomes more significant.He also points out that debt, and the austerity measures associated with it, is not only part of the re-structuring of neoliberal capitalism but also exists as form of social control where people are afraid to risk their jobs or are ashamed to ask for help in repaying debt.

Read the full review at Counterfire.