I thought this was an excellent account in Corbynism: A Critical Approach by Frederick Harry Pitts and Matt Bolton. From loc 627:
Austerity is often taken to have caused the contemporary rise of populism. In retrospect, however, it is abundantly clear that austerity itself was a populist project –both in Chantal Mouffe’s sense of the creation of a political frontier between ‘us’ and ‘them,’ and Jan-Werner Müller’s notion of the hyper-moralisation of political discourse. How else to explain the singularly odd way that Britain responded to the financial crisis? The Cameron government was far from the only one to react to the crash and their ballooning deficits by insisting on the need for a programme of austerity. But in no other country did the public don hairshirts with such gusto. As Owen Hatherley has noted, Britain was convulsed by a fit of ‘austerity nostalgia’ in the wake of the crisis – unleashing dark political energies Tom Whyman captured well in the coinage ‘cupcake fascism’.
The book was published in 2018 and presumably written in 2017. But it’s hard not to link this to Brexit when reading it in April 2019. If they are correct about austerity populism then did Cameron and Osborne sow the seeds of their own destruction in their strategic embrace of the austerity narrative? From loc 640:
It was as if the public actively welcomed the collapse of the economy, regarding it as an event which finally gave some meaning to a life waylaid by the cheap thrills of credit-fuelled consumerism and reality TV, a form of existence that suddenly felt as toxic as the junk bonds clogging up the balance sheets of banks around the world. The austerity narrative was founded on an opposition between a national community of ‘hardworking people’ and a feckless underclass who had brought Britain to its knees –namely the ‘scroungers’, the benefit cheats, those too lazy to work and choosing to live off the largesse of the state. In this telling, the financial crisis itself was essentially caused by the Labour government’s reckless decision to rack up monstrous debts in order to fund the lavish lifestyles of their shiftless clientele. In contrast to this rotten coalition of bloated state, corrupt liberal-left political elite, and workshy scroungers, the Tories would instead take the side of the ‘hardworkers’, those willing to take responsibility for their own lives and roll up their sleeves to ‘sort out Labour’s mess’. ‘We’re all in it together’ was the cry, deliberately evoking the Churchillian spirit of wartime. The ‘deficit’ –and those responsible for it –was turned into a national enemy