Laurence Lewis’s Daily Kos editorial, “The cruel stupidity that is economic austerity,” is a blazing indictment of austerity as a means of recovering from recession, and it cites experts and statistics showing that austerity programs (in Europe, particularly) are deepening the recession, destroying lives, and demolishing vital social institutions that are especially needed in economic downturns. Lewis’s citations are not to the usual suspects in the fight against austerity, but rather to rock-ribbed conservatives and publications like The Economist, the chief economist of Standard Chartered, the IMF, the World Bank and the WTO. And there’s Joseph Stiglitz, who compares austerity to medieval blood-letting: “when you took the blood out, the patient got sicker. The response then was more blood-letting until the patient very nearly died. What is happening in Europe is a mutual suicide pact.”
How bad is it?
* In Greece, we now have record unemployment, which includes the majority of young workers. Homelessness is up 20 percent, with soup kitchens in Athens reporting record demand, and the usually low suicide rate having doubled.
* Portugal has complied completely with the austerity demands it accepted for its bailout deal, but its debt is growing and its economy is shrinking, its unemployment rate continues to reach new heights, there is a crisis in medical care, and a 40 percent rise in emigration, with the Portuguese government acknowledging its own failure by actually encouraging its citizenry to leave.
* In Spain, austerity has resulted in falling industrial output and deepening debt, with record unemployment and a stunning rate of 50 percent youth unemployment. And the Spanish government’s incomprehensible response is to impose even more crushing austerity.
* Ireland has fallen back into recession as austerity has led to falling economic output. A better future is being sacrificed, as young workers look for work abroad, “generation emigration” expected to number 75,000 this year.
* The success of Italy’s wealthy technocrat government was concisely summarized in similar terms: Italy’s austerity measures are stunting activity in the euro-zone’s third-largest economy, recent budget and economic data show, suggesting the steps are backfiring.
The cruel stupidity that is economic austerity
(via Making Light)
(Image: GREEKS PROTEST AUSTERITY CUTS, a Creative Commons Attribution (2.0) image from piazzadelpopolo’s photostream)