So I was interested to read an article by Ha-joon Chang in this weeks Guardian. Chang is always worth reading because he tells it how it really is. I have no idea what his politics are but, as far as I can see, he is a pragmatist who is interested in what makes economies work for people, and how that can be achieved. I recommend you read his post but Its worth quoting a key passage here:
"If even the IMF doesn't approve, why is the UK government persisting with a policy [austerity] that is clearly not working? Or, for that matter, why is the same policy pushed through across Europe? A certain dead economist would have said it is because the government is "in reality instituted for the defence of the rich against the poor". Dead right [my italics].
Current policies in the UK and other European countries are really about making poor people pay for the mistakes of the rich. Millions of poor people have lost their jobs and the support they received through welfare, but how many of those top bankers who caused the crisis have suffered – except for a cancelled knighthood here and a partially returned pension pot there? If anyone has suffered in the financial industry, it is its poorer members – junior analysts who lost their jobs and tellers who are working longer hours for shrinking real wages."
|Adam Smith: well aware that government acts in the interests of the ruling class|