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IMF: Austerity is much worse for the economy than we thought
by Brad Plumer at the Washington Post.
Finally, they admit defeat.
Might have something to do with younger IMF economists taking charge.
However, I don't expect much from this. To the ideologues, the failure of austerity measures in Europe just means they have to double or triple down with even more austerity. Also, European leaders have internalized the austerity ideology.
Fact of the matter is, the economics profession is no longer viable as an academic institution.
Democrats need to embrace Modern Monetary Theory (MMT) and reject austerity and deficit reduction.
This is how we should do things:
1. Decide on what 'sized' government we want.
2. Set a tax level that corresponds to full employment.
3. Let the deficit float per non government demand for US dollar aggregate savings.
How many times do MMT economists have to prove the neoliberals wrong?
It's been 20 years of MMT dissent. MMT economist accurately predicted the erasure of the Clinton surplus, the demise of the Eurozone, the failure of austerity to reduce budget deficits, that interest rates would not spike after the USG downgrade, etc., etc.
Everybody else got it all wrong.
Being right should count for something.