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View Diary: How much longer can the Austerians and their puppets go on with their failed policies and lies? (125 comments)

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  •  The whole thing is about "who runs the show." (9+ / 0-)

    Liberals and reasoned moderates keep being dumbfounded by the blatant irrationality of governments' persisting in Austerian policies in the face of their obvious pervasive failure.  But seeing the promotion of Austerity by the Western elites as irrational assumes that they share the almost universal goal of liberals, moderates, and most economists -- I.e., an economy with healthy growth and something close to full employment.

         Of course, the fly in the ointment for elites in that widely-desired situation is that THEY LOSE POWER when growth is good and unemployment is high, relative to what they have in the current situation.  It never ceases to amaze me that it's not a universally-accepted truism that the real powers among Republicans vastly prefer moderately high unemployment to near-full employment even at the cost of slower growth.  

        Of course, this preference also stems in part from the negative pressure on wages -- and thus upward boosting on profits -- created by high unemployment.  But I think an even more influential motivation is the extra POWER over workers that high unemployment gives employers and managers; and I think the way that relationship operates are pretty obvious.  Finally, increases in power also create increased differences in perceived status, which is determined much more by relative than absolute levels of wealth and power.

    Evidence for my hypothesis:  Stories today that the powers that be in Davos are celebrating the end of the world financial crisis and don't seem to be the least concerned with the astronomical unemployment rates in Greece, Italy, and Spain, much less the more moderate but still high ones in the UK and US.  Seriously -- could their "let them eat cake" attitudes have been any more blatant but offhand?

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