IMF report is a damning indictment of deflationary policies

The IMF have released their bi-annual World Economic Outlook report which analyses the world economy, individual countries and predicts growth prospects for the future.

The IMF have released their bi-annual World Economic Outlook report which analyses the world economy, individual countries and predicts growth prospects for the future.

The most recent report, Tensions from the Two-Speed Recovery: Unemployment, Commodities, and Capital Flows, has dramatically reduced growth prospects in the Irish economy to 0.5% for 2011, down from 0.9% a mere 4 months ago. If you compare this figure to the estimates from Budget 2011 which predicted that GDP would grow by 1.7% in 2011, you get a real understanding of the destructive impact of the deflationary policies that have been pursued since the financial collapse in 2008.

The Socialist Party have argued from the beginning of the crisis that policies of cutting wages, slashing spending on public services and increasing taxation would lead to a deflationary spiral, worsening the economic situation and destroying the living standards of workers, dashing the hopes of young people and swelling the ranks of the unemployed.

Confronted with this stark reality the reaction of the new Fine Gael / Labour Party government and the business establishment has been to prepare to impose further, more severe austerity policies. The public sector is being primed for further cuts, state assets are being lined up for privatisation and over 2,000 workers in AIB will be thrown on the dole over the next two years. These attacks are more of the same and will worsen the situation and need to be resisted.

 

Total
0
Shares
Previous Article

No more conciliation we need opposition!

Next Article

Socialist Party TDs salute CPSU delegates

Related Posts
Read More

End the mortgage nightmare

The tragic death by suicide of former Priory Hall resident Fiachra Daly has put the exploding mortgage crisis centre stage. The brave decision by his partner Stephanie Meehan go public at this difficult time for her family has put the human face to the tragedy of this financial meltdown.

Read More

The euro patient: ‘Stabilised’ but still critical

The Greek bailout 2.0 has averted a default, for the moment. The new fiscal pact is a straitjacket that will aggravate Europe’s austerity-induced recession. Ireland’s referendum threatens to shake the EU and the eurozone. There is growing discord among EU leaders. Far from over, workers’ struggles against capitalist austerity will erupt on an even bigger scale.