• Due to a glitch in the old vBulletin software, some users were "banned" when they tried to change their passwords at the end of February. This does not apply after the site was converted to Xenforo. If you were affected by this, please contact us.




IMF economists slam some elements of 'Neo-Liberal' agenda

Utopian Hermit Monk

Well-known member
Joined
Jun 8, 2007
Messages
3,928
Neoliberalism: Oversold? -- Finance & Development, June 2016

... there are aspects of the neoliberal agenda that have not delivered as expected. Our assessment of the agenda is confined to the effects of two policies: removing restrictions on the movement of capital across a country’s borders (so-called capital account liberalization); and fiscal consolidation, sometimes called “austerity,” which is shorthand for policies to reduce fiscal deficits and debt levels. An assessment of these specific policies (rather than the broad neoliberal agenda) reaches three disquieting conclusions:

•The benefits in terms of increased growth seem fairly difficult to establish when looking at a broad group of countries.­

•The costs in terms of increased inequality are prominent. Such costs epitomize the trade-off between the growth and equity effects of some aspects of the neoliberal agenda.­

•Increased inequality in turn hurts the level and sustainability of growth. Even if growth is the sole or main purpose of the neoliberal agenda, advocates of that agenda still need to pay attention to the distributional effects.­ ...
... Austerity policies not only generate substantial welfare costs due to supply-side channels, they also hurt demand—and thus worsen employment and unemployment. The notion that fiscal consolidations can be expansionary (that is, raise output and employment), in part by raising private sector confidence and investment, has been championed by, among others, Harvard economist Alberto Alesina in the academic world and by former European Central Bank President Jean-Claude Trichet in the policy arena. However, in practice, episodes of fiscal consolidation have been followed, on average, by drops rather than by expansions in output. On average, a consolidation of 1 percent of GDP increases the long-term unemployment rate by 0.6 percentage point and raises by 1.5 percent within five years the Gini measure of income inequality (Ball and others, 2013).­ ...
They might have added that austerity policies also KILL!

Someone, some day, may provide a tally of deaths attributable (<- health care cuts, cuts to community support organisations, suicide, etc.) to 8+ years of austerity policies in Ireland.
 


patslatt

Well-known member
Joined
Apr 11, 2007
Messages
13,693
Neoliberalism: Oversold? -- Finance & Development, June 2016

They might have added that austerity policies also KILL!

Someone, some day, may provide a tally of deaths attributable (<- health care cuts, cuts to community support organisations, suicide, etc.) to 8+ years of austerity policies in Ireland.
NEOLIBERALISM

Hard lefties have it on the brain. Their definition of a neoliberal is anyone who applies rational argument, statistical and financial analysis to socioeconomic issues.

Greece, the poster child of anti-austerity, behaved like a stupid teenager who blew €50,000 on silly spending on his dad's credit card and then whinged because dad wouldn't increase the debt limit.
 
Last edited:

Hitchcock

Well-known member
Joined
Nov 17, 2012
Messages
10,222
NEOLIBERALISM

Hard lefties have it on the brain. Their definition of a neoliberal is anyone who applies rational argument, statistical and financial analysis to socioeconomic issues.

Greece, the poster child of anti-austerity, behaved like a stupid teenager who blew €50,000 on silly spending on his dad's credit card and then whinged because dad wouldn't increase the debt limit.
Any evidence to back that up?
 

ShinnerBot No.32564844524

Well-known member
Joined
Dec 29, 2013
Messages
4,142
NEOLIBERALISM

Hard lefties have it on the brain. Their definition of a neoliberal is anyone who applies rational argument, statistical and financial analysis to socioeconomic issues.

Greece, the poster child of anti-austerity, behaved like a stupid teenager who blew €50,000 on silly spending on his dad's credit card and then whinged because dad wouldn't increase the debt limit.
Neoliberalism (or sometimes neo-liberalism)[1] is a term which has been used since the 1950s,[2] but became more prevalent in its current meaning in the 1970s and 80s by scholars in a wide variety of social sciences[3] and critics[4] primarily in reference to the resurgence of 19th century ideas associated with laissez-faire economic liberalism.[5] Its advocates support extensive economic liberalization policies such as privatization, fiscal austerity, deregulation, free trade, and reductions in government spending in order to enhance the role of the private sector in the economy.[6][7][8][9][10][11][12] Neoliberalism is famously associated with the economic policies introduced by Margaret Thatcher in the United Kingdom and Ronald Reagan in the United States.[7] The implementation of neoliberal policies and the acceptance of neoliberal economic theories in the 1970s are seen by some academics as the root of financialization, with the financial crisis of 2007–08 one of the ultimate results.[13][14][15][16][17]


https://en.wikipedia.org/wiki/Neoliberalism
A few interesting things to note:

  • Neo-liberalism lays exclusive claim on principles of free trade even though however most schools of economics can see the benefits of free trade within reason.
  • Neo-liberals claim credit for events where technological advances were in fact responsible for growth: Big bang and Globalisation for example
  • Laissez-faire was the leading ideology of Charles Treyvellian worsening one of the worst attrocities to hit the Irish people. No small irony that parts of Irish society now embrace it.
 

WTTR

Well-known member
Joined
Sep 25, 2009
Messages
5,304
Website
www.johnfhiggins.eu
Chile was held up to every politician as the poster boy of neoliberlism: Irish swallowed this; hook, line and sinker!

Utopian Hermit Monk I noted this from your IMF link

Chile’s pioneering experience with neoliberalism received high praise from Nobel laureate Friedman, but many economists have now come around to the more nuanced view expressed by Columbia University professor Joseph Stiglitz (himself a Nobel laureate) that Chile “is an example of a success of combining markets with appropriate regulation” (2002). Stiglitz noted that in the early years of its move to neoliberalism, Chile imposed “controls on the inflows of capital, so they wouldn’t be inundated,” as, for example, the first Asian-crisis country, Thailand, was a decade and a half later.
But, unlike the Irish government, Chile kept control of the capital inflows.

The Irish did not put a stop to such international flows, even when it was pointed out to them in 2007.
They kept revelling in the massive amounts of associate tax pouring into the exchequer without a care in the world.

The International Financial Buccaneers put a stop to the international capital flow into Ireland in 2010, when they realised that Ireland was becoming a basket case.

Our government allowed massive flows of money to come into the economy, unlike the Chileans some thirty to forty years earlier.

The neoliberals related a tale about the Chileans acceptance of free movement of funds; the Irish establishment and politicians obviously felt special that we were signaled out for such special treatment.

We were fooled all the way to the ultimate degrading of all us citizens by loading us with the rescue of international failed investments in our banks.

The indignity for all Irish citizens suffering joblessness, lacking hospital treatment, imposition of water charges, woeful financial loan repayment pressure, extra taxation e.g. USC is a sad reflection on our financial and social awareness.

We have now A €200BN National Debt and international Equity Funds pillaging our assets from Malin to Mixen head; yet the penny has yet to drop with our politicians.
 

Dorcha

Well-known member
Joined
Sep 16, 2010
Messages
3,929
NEOLIBERALISM

Hard lefties have it on the brain. Their definition of a neoliberal is anyone who applies rational argument, statistical and financial analysis to socioeconomic issues.

Greece, the poster child of anti-austerity, behaved like a stupid teenager who blew €50,000 on silly spending on his dad's credit card and then whinged because dad wouldn't increase the debt limit.
I never considered the IMF as "hard lefties". When did this conversion happen?
 

Hibee

Well-known member
Joined
Dec 15, 2015
Messages
1,910
The IMF chappies are smart cookies . They are positioning themselves so that the ECB or other creditors will be seen as the bad guys.

Also often the paulian conversions are well after the horse has bolted .
 

Dame_Enda

Well-known member
Joined
Dec 14, 2011
Messages
53,178
2008 was the great crisis of neoliberalism just as the Panic of 1873 was the crisis of silver coinage. The fact that incomes have only risen 1% during the recovery underlines that only the 1% are seeing an improved standard of living. Inequality is inevitable but neoliberalism without boundaries exacerbates it, starving public cservices the poor, disabled and elderly rely on. Small-town rail is closed, exacerbating rural isolation especially for the elderly. As a child a train used to pass through my local village. We are told we can't afford these routes yet for 70 years we were able. Likewise with hospitals and beds. Neoliberalism tells us to open the borders to cheap labour, which results in insufficient schools and hospitals to cater with the increased population and downward pressure on wages.
 

patslatt

Well-known member
Joined
Apr 11, 2007
Messages
13,693
A few interesting things to note:

  • Neo-liberalism lays exclusive claim on principles of free trade even though however most schools of economics can see the benefits of free trade within reason.
  • Neo-liberals claim credit for events where technological advances were in fact responsible for growth: Big bang and Globalisation for example
  • Laissez-faire was the leading ideology of Charles Treyvellian worsening one of the worst attrocities to hit the Irish people. No small irony that parts of Irish society now embrace it.
BRITAIN TOOK IN 3 MILLION IRISH FROM 1846 to 1865
As for the latter point, it would have been very difficult to feed millions of people for several years of famine. Even if grain exports were stopped, farmers would have ceased growing grain as soon as the grain embargo was announced.

Fortunately, cheap steamship fares from Irish ports to Britain facilitated the laissez faire solution. Driven by hunger, people walked the numerous roads to the ports. A popular destination was London Docklands.

Ireland's population fell from 8 million in 1846 to 4 million in 1865, with most of the 4 million drop attributable to emigration to Britain.It is remarkable that Britain could absorb such huge numbers of Irish,mostly Catholic. In contrast, these days the 550 million EU population is having great difficulty accepting a few million refugees.
 

patslatt

Well-known member
Joined
Apr 11, 2007
Messages
13,693
A few interesting things to note:

  • Neo-liberalism lays exclusive claim on principles of free trade even though however most schools of economics can see the benefits of free trade within reason.
  • Neo-liberals claim credit for events where technological advances were in fact responsible for growth: Big bang and Globalisation for example
  • Laissez-faire was the leading ideology of Charles Treyvellian worsening one of the worst attrocities to hit the Irish people. No small irony that parts of Irish society now embrace it.
BRITAIN TOOK IN UP TO 3 MILLION IRISH FROM 1846 to 1865
As for the latter point, it would have been very difficult to feed millions of people for several years of famine. Even if grain exports were stopped, farmers would have ceased growing grain as soon as the grain embargo was announced.

Fortunately, cheap steamboat fares from Irish ports to Britain facilitated the laissez faire solution. Driven by hunger, people walked the numerous roads to the ports. A popular destination was the growing London docks.

Ireland's population fell from 8 million in 1846 to 4 million in 1865, with most of the 4 million drop attributable to emigration to Britain.It is remarkable that Britain with a population of 30 million could absorb such huge numbers of Irish,mostly Catholic. In contrast, the 550 million EU population is having great difficulty accepting a few million refugees.

Britain was surprisingly familiar to the very poorest of Irish tenant farmers before the famine. Because they could not feed their families from their small farms,they worked seasonally on Britain's farms to earn money.
 
Last edited:

Notachipanoaktree

Well-known member
Joined
Jul 26, 2013
Messages
8,430
NEOLIBERALISM

Hard lefties have it on the brain. Their definition of a neoliberal is anyone who applies rational argument, statistical and financial analysis to socioeconomic issues.

Greece, the poster child of anti-austerity, behaved like a stupid teenager who blew €50,000 on silly spending on his dad's credit card and then whinged because dad wouldn't increase the debt limit.
Neoliberalism, the absurd idea of economic government based solely on the market and its ability to self-regulate.
 

Trainwreck

Well-known member
Joined
Sep 6, 2012
Messages
26,809

Equinox

Well-known member
Joined
Mar 4, 2011
Messages
3,069
Shock horror. Income distribution in Ireland is more equal than it was 20 years ago. Though I wonder does that just mean that the top .1% has moved offshore.



https://twitter.com/UNUWIDER/status/742643063449866240
Well a lot of property developers went broke between those two dates, don't worry though, our givernment is working hard to re-establish the 1%, mostly by pouring a lot of cash from the rest of us into rescuing them and refloating the property market.
 

New Threads

Popular Threads

Most Replies

Top