by James O'Connor
In “The Fiscal Crisis of the State,” James O'Connor explores the financial struggles faced by governments in the modern world, particularly focusing on the tension between the state's need for revenue and its growing fiscal responsibilities.
O'Connor argues that as governments have expanded their social welfare programs, they have encountered severe financial limitations. This imbalance, he asserts, leads to a fiscal crisis, where governments are unable to meet their spending obligations without resorting to increasing public debt or taxes.
The book explores the relationship between state power, the economy, and social welfare systems, positing that the state's efforts to provide social services and stabilize the economy often exceed its ability to fund these programs sustainably.
O'Connor examines the role of taxation, debt, and state intervention in the economy, showing how these elements contribute to fiscal crises in both developed and developing nations. He highlights the contradictions within the welfare state model and the economic forces that limit the effectiveness of government spending.
“The Fiscal Crisis of the State” is a critical analysis of the economic and political challenges of modern governance and provides valuable insights into the limitations of fiscal policy and state intervention in the economy.