Thread: Again on Greece
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Old May 26 2013, 06:51 PM   #17
Re: Again on Greece

Why should you shut up? You are saying the same think as all sane people, that austerity doesn't work, hurts poor people and is an excuse for neoliberal policies.

But I have a problem with your ideological framing (and this is after all the key issue underneath our discussion, you think that the European sovereign debt crisis is a general crisis of capitalism, I think that you can easily solve it without any large systemic changes. You think that a market economy with decent rules and reduced political power of capital / the rich is is, la Kalecki, not politically feasible, I think it is.)

"Bourgeois economics" (As opposed to what, Marxist economics? Last time I checked none of Marx' predictions happened in reality and as a good empiricist I cast out a theoretical model which hasn't worked.) says that during a recession in which interest rates are close to zero (aka liquidity trap) and conventional monetary policy is impotent you have to conduct expansionary fiscal policy to close the output gap and increase employment.
As we just conducted the largest experiment since the Great Depression and the empirical results are fairly unambiguous and have confirmed basic macro research institutions like the IMF start to change their minds.

You can pretend that this is the "true" communist left vs. all the bourgeois squeezers of the working class (which I guess includes social democrats like myself) but the reality is less black and white. The best recent piece on austerity in Europe I know is done by one of these evil bourgeois economists, Paul de Grauwe, a centrist liberal. If you know any Marxist economic analysis which is better I am all ears.
The illegal we do immediately; the unconstitutional takes a little longer. - former US Secretary of State and unconvicted war criminal Henry Kissinger
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