IMF Concludes Austerity Doesn’t Work After 30 Years of Testing

If a policy works, and there is evidence to support that it is a net benefit to society, then I will support it.

I have never been convinced that austerity and trickle-down economics have ever had a positive effect on society. This is due to a thorough lack of compelling evidence. I’m no hard-nosed anti-capitalist, but I simply choose only to recognize policies that are evidence-based, cost-effective, and most likely to provide a good return on the investment of tax revenue.

The International Monetary Fund has been testing those hypotheses on bankrupt countries for thirty years. After seeing failure after failure, they have been forced by reality and evidence to conclude that these strategies simply do not work, especially in nations that are just developing economic capacity and where a robust middle class has not yet developed.

See article: http://www.imf.org/external/pubs/cat/longres.aspx?sk=42986.0

Indeed, even in developed nations, it turns out that austerity and supply-side economic benefits do NOT create jobs, but in fact end up impoverishing the middle classes upon which a consumer economy depends.

Either we have to transition our economies out of their present dependence on consumer spending, or we have to live with the very real fact that money and debt are as real as we perceive and believe them to be, and nothing more.