In a fit of coherence, one of the world’s leading capitalists has warned that spending cuts will hurt global economic recovery. IMF Managing Director Christine Lagarde said in the Financial Times on Tuesday that spending cuts were not the appropriate means to forestall another recession, Democracy Now reported yesterday.
But will the ruling elite listen and do they care?
Austerity on the masses means the wealthy can continue to enjoy their low tax rates, subsidies for their businesses and continued prosperity. Their businesses, for the most part, seem to be doing just fine, even without hiring back all the unemployed workers. In fact they've doing better than ever, with record profits and record productivity by the down-sized, sped-up and overworked employees who still have their jobs.
Of course this will perpetuate or worsen the recession. But if they can keep it up long enough, at least in the U.S., it will likely make Obama unelectable.