Fuck austerity. It doesn't work and the IMF should fucking stop pushing for it.
(it only works to fuck up countries)
this post was submitted on 30 Aug 2023
71 points (100.0% liked)
World News
32075 readers
990 users here now
News from around the world!
Rules:
-
Please only post links to actual news sources, no tabloid sites, etc
-
No NSFW content
-
No hate speech, bigotry, propaganda, etc
founded 4 years ago
MODERATORS
Yet Argentina had destroyed their economy for 25 years because they won't act responsible and institute policies of austerity. This just keeps happening to them.
Other countries in the same bed that have ignored austerity policy, Venezuela, Zimbabwe, Sudan...
So ya it is actually a necessity unless your fine with triple digit inflation year after year.
According to a 2020 study, austerity increases the risk of default in situations of severe fiscal stress, but reduces the risk of default in situations of low fiscal stress.
https://en.wikipedia.org/wiki/Austerity#Empirical_considerations
Hammer, see nail.
So the plan is to continue printing money to fund the deficit? Great way to get inflation under control. It's working wonders in Argentina.
When has austerity ever worked?
It's working exactly as it is designed to. Funneling money from the poor to the rich.
Austerity is never advised in a situation where ANYTHING is going to work. It's the equivalent of trying to tighten your budget when you lose your job. It could possibly help a little but it's not going to fix it.
That was after the Argentine Peso lost 20% of it's value in a single day to appease the IMF (according to the official exchange rate). Unless wages increase by more than 20%, then they're not really increasing, just keeping up with inflation.
Yeah. Inflation is a tool for the ruling class to recoup any gains the working class has made, with interest.
In defiance? HAHAHA the bastard is in cahoots with the IMF!