Howard Schneider, writing at the Washington Post has a column entitled An amazing mea culpa from the IMF’s chief economist on austerity. The IMF has determined that it underestimated the “fiscal multipliers” at work in Greece, such that the austerity measures imposed actually seemed to increase the country’s fiscal problems even as it imposed more pain.
As I’ve suggested before, we seem to have this almost subconscious view of the economy as a morality play. If people aren’t suffering under government economic policy, we’re at least distrustful that it’s encouraging sloth or one of the other deadly sins. It’s like we think medicine can’t possibly be effective if it tastes good.
Anyway, the IMF seems to be acknowledging that Greek austerity has actually weakened its economy. Nobody could have predicted.
Nobody could have predicted? That’s sarcasm, right? I really hope that’s sarcasm. I think it’s sarcasm.
It’s sarcasm.
And yet my republican friends continue to insist the answer to our joblessness problem is to fire public employees.
Go figure.
Very frustrating times yet I feel us good guys are gaining more ground every day.
In the last year or so of the recovery, private employment was increasing a predicted rate. Public layofss were keeping unemployment figures up.
Dog’s view of the economy as a morality play is interesting. It seems almost apocalyiptic to the tea party and assorted fringe types. Let’s go over to the cliff to punish us back into privation.
Maybe it is my self-preservation instinct and disbelief in an afterlife, but I would rather keep swimming than cliff dive.