IMF Debunks Austerity
by Thom Hartmann
March 6, 2014
Extreme inequality is dragging down our economy. According to a new discussion paper from the International Monetary Fund, countries with a large wealth divide have less economic growth than nations with more evenly distributed incomes. In their paper, the IMF backed Keynesian economist Joseph Stiglitz, and the organization warned that, "inequality can also make growth more volatile, and create the unstable conditions for a sudden slowdown in GDP growth."
In other words, we can't have long-term, stable economic growth when the system is rigged to benefit those at the top. In fact, the IMF paper flat out dismissed right-wing talking points about so-called "wealth distribution" as self-defeating. The anti-poverty charity organization Oxfam cheered this IMF report, and said, "The IMF has debunked the old myth that redistribution is bad for growth and demolished the case for austerity. That redistribution efforts - essential to fight inequality - are good for growth is a welcome finding. Low tax and low public spending are clearly no the route to prosperity."
As we've been saying all along, no nation, in the history of the world, has ever cut their way to prosperity. It's time to put an end to Republican austerity measures, and start investing in our nation with stronger social programs, new infrastructure, and good-paying American jobs.
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