IMF Report Admits IMF's Obsession with Capitalism Is Killing Prosperity(3 Posts)
"By releasing this report, the IMF has shown that 'trickle-down' economics is dead; you cannot rely on the spoils of the extremely wealthy to benefit the rest of us."
In light of how the International Monetary Fund has spent most of its existence parading around the world telling governments to make their economies more friendly for multinational corporations by suppressing wages, restricting pensions, liberalizing industries, and more or less advocating they ignore the popular will of workers and the less fortunate—all in the name of market capitalism and endless economic growth—a new report released by the IMF on Monday contains an ironic warning: stop doing all that.
Though it perpetuates the idea that economic growth is the master to whom all should bow, the new research—conducted by the IMF's own economists and submitted under the title Causes and Consequences of Inequality (pdf)—argues that many of the policies promoted by the IMF have actually harmed nations by exacerbating widespread economic inequality. As many have noted, current disparities between the world's richest and poorest represent a nearly unprecedented level of global inequality which the report described as the "defining challenge of our time."
In order to strengthen economies, the report declares, nations should admit that "trickle-down" theories of wealth and prosperity do not work. In lieu of those, the study recommends raising wages and living standards for the bottom 20 percent, installing more progressive tax structures, improving worker protections, and instituting policies specifically designed to bolster the middle class.
It's a generous interpretation to suppose that the ruling class give a shit about 'the economy', or society in general, rather than wealth of a tiny minority.
the lessons of countries within the EU, especially Greece who want to keep their retirement age at 50 when their creditor countries retire ever close to 70 year years old - is that a 'bottom up' welfare/benefits/pension State is unaffordable - even with capitalism.
Those who don't want capitalism in the largest countries, or think that a country can (over) tax their economies to compete with the likes of China while still complaining companies are not creating enough jobs here, need to come up with solutions of HOW the benefit/welfare/pension State they want CAN be afforded WITHOUT capitalism.
Education is a great leveler, the day those within the bottom 20% have all tried their hardest to help themselves, their life chance, living standards and the probability of more domestic and relocating companies here creating more jobs, will create wider prosperity.
Once those who can help themselves (but can't be arsed to) do so, society will be able to spend more money, time and effort on those that truly need help.
P.S. Maybe the IMF should also look into the effects of too much needless bureaucracy and red tape on capitalism, restricting job growth/prosperity, starting with the EU.
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