A recent IMF study (June 2016) exposes flaws in neoliberal policy that have afflicted progressive issues for over 40 years. The title of the study itself “Neoliberalism: Oversold?” hints at the underlying thesis that something must be wrong. Why else pose the question?
“Instead of delivering growth, some neoliberal policies have increased inequality, in turn jeopardizing durable expansion.” (Neoliberalism: Oversold? IMF, Finance & Development, June 2016, Vol.53, No.2 ). Senator Bernie Sanders wholeheartedly agrees.
And, according to the study: “Austerity policies not only generate substantial welfare costs due to supply-side channels, they also hurt demand—and thus worsen employment and unemployment.” Bernie would probably agree with this too.
This sudden revelation calls for trumpets, horns, bells, and Roman Candles shooting off multi-colored projectiles into the sky, a celebration… maybe?
The IMF, yes the International Monetary Fund, has exposed the soft hidden underbelly, the innate destructiveness, of neoliberal policy, although the IMF is too diplomatic to use the word “destructiveness.” In fact, the IMF endorses neoliberalism.
But, here’s what they’ve concluded: Austerity backfires!
Not only that, it always, inevitably, almost for sure sucks the air out of social welfare programs, but the IMF study did not address this.
Their conclusion that neoliberalism has warts is a blessing for all whom frown upon neoliberalism, although very, very…