Wednesday, May 2, 2012

14 economic advisors Flaherty consults on policy and budgets are all from the financial sector: Fiscal contraction doesn't work

The 14 economic advisors Flaherty consults on policy and budgets are all from the financial sector, mostly banksters.

Here's what James K. Galbraith says about the implicit danger of such a stacked deck:

 "....economic policy should not be under the control of bankers, and any economic team which is dominated by the financial sector is going to be largely serving that sector's interest. Now, that, I think, is a very clear fact and something which everybody should be prepared to resist and to object to when it occurs and to protest until it changes. Until that happens, very little else will happen."

 Let me reiterate by way of paraphrase that last bit:  we should be resisting, objecting to - whenever and wherever we can -  the Harper Regime's deep privileging of the financial sector through its overt neoliberal agenda. There's nothing remotely subtle going on here. As I've noted many times, it's such a classic neoliberal agenda it ought to be taught in university political economy classes. If we can't shift that ideological policy ground, none of the social and poltical transformations we seek has a chance. This should be our primary concern in our efforts to bring about system change. Everything else is a symptom.

And here's what even Larry Summers, Harvard professor, late of the White House advisory staff, has to say about misguided austerity such as that implemented by the Harper Regime:

"Fiscal contraction reduces incomes, limiting the capacity to repay debts. It achieves only limited reductions in deficits once the adverse effects of economic contraction on tax revenue and benefit payments are accounted for. And it casts a shadow over future growth prospects by reducing capital investment and raising unemployment, which inevitably takes a toll on the capacity and willingness of the unemployed to work."

This is what protests around the world yesterday were really about.

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