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Why is the IMF anti-austerity?

AristaeusAristaeus Posts: 9,974
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in Politics #1
Why is the IMF, an organization hardly known for being left wing, critical of austerity measures?

"The IMF's chief economist, Olivier Blanchard, explained that recent efforts among wealthy countries to shrink their deficits — through tax hikes and spending cuts — have been causing far more economic damage than experts had assumed.

IMF forecasts have been consistently too optimistic for countries that pursued large austerity programs. This suggests that tax hikes and spending cuts have been doing more damage to those economies than policymakers expected. (Conversely, countries that engaged in stimulus, such as Germany and Austria, did better than expected.)"

Why does Osborne, with a degree in history, think he knows more about economics than the IMF?

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    wampa1wampa1 Posts: 2,997
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    #2
    I'm not sure it falls within the remit of the Impossible Missions Force
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    AdsAds Posts: 37,062
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    #3
    Aristaeus wrote: »
    Why is the IMF, an organization hardly known for being left wing, critical of austerity measures?

    "The IMF's chief economist, Olivier Blanchard, explained that recent efforts among wealthy countries to shrink their deficits — through tax hikes and spending cuts — have been causing far more economic damage than experts had assumed.

    IMF forecasts have been consistently too optimistic for countries that pursued large austerity programs. This suggests that tax hikes and spending cuts have been doing more damage to those economies than policymakers expected. (Conversely, countries that engaged in stimulus, such as Germany and Austria, did better than expected.)"

    Why does Osborne, with a degree in history, think he knows more about economics than the IMF?

    What are you on about? The IMF has been very supportive of Osborne recently.
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    Aurora13Aurora13 Posts: 30,246
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    Aristaeus wrote: »
    Why is the IMF, an organization hardly known for being left wing, critical of austerity measures?

    "The IMF's chief economist, Olivier Blanchard, explained that recent efforts among wealthy countries to shrink their deficits — through tax hikes and spending cuts — have been causing far more economic damage than experts had assumed.

    IMF forecasts have been consistently too optimistic for countries that pursued large austerity programs. This suggests that tax hikes and spending cuts have been doing more damage to those economies than policymakers expected. (Conversely, countries that engaged in stimulus, such as Germany and Austria, did better than expected.)"

    Why does Osborne, with a degree in history, think he knows more about economics than the IMF?

    Do you know anything other than blind partisan rhetoric.? Simply UK has not pursued large scale Austerity. You've no idea what thay actually means clearly. IMF have apologised to Osborne for Blanchard comments in 2013 saying they were wrong. UK remains fastest growing major western economy. It's why Tories won election.
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    barky99barky99 Posts: 3,921
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    austerity is a loosely bonded sticking plaster that in medium to long term creates more problems than it solves ... sure it can make books balance a bit more on paper day to day but that just hides the truth and allows politicians like Osbourne/Cameron to flat out lie to public .... nothing Osbourne has done has cut UK debt by 1 penny, it has instead added hundred of billions of £ to the 'on the books' government debt to make it £1.5Tn with loads more 'off the books' then you add personal debt on top & UK is in a hole £8Tn deeper than government will admit!
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    jcafcwjcafcw Posts: 11,282
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    Aurora13 wrote: »
    Do you know anything other than blind partisan rhetoric.? Simply UK has not pursued large scale Austerity. You've no idea what thay actually means clearly. IMF have apologised to Osborne for Blanchard comments in 2013 saying they were wrong. UK remains fastest growing major western economy. It's why Tories won election.

    And they achieved the fastest growing western economy without large scale austerity. So why is it wrong for them to be anti-austerity?
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    Old Man 43Old Man 43 Posts: 6,214
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    #7
    Aristaeus wrote: »
    Why is the IMF, an organization hardly known for being left wing, critical of austerity measures?

    "The IMF's chief economist, Olivier Blanchard, explained that recent efforts among wealthy countries to shrink their deficits — through tax hikes and spending cuts — have been causing far more economic damage than experts had assumed.

    IMF forecasts have been consistently too optimistic for countries that pursued large austerity programs. This suggests that tax hikes and spending cuts have been doing more damage to those economies than policymakers expected. (Conversely, countries that engaged in stimulus, such as Germany and Austria, did better than expected.)"

    Why does Osborne, with a degree in history, think he knows more about economics than the IMF?

    I think that you will find that the IMF is talking about Greek style austerity rather the far milder form carried out in the UK.
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