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http://www.imf.org/external/pubs/ft/fandd/2016/06/ostry.htm
>Milton Friedman in 1982 hailed Chile as an “economic miracle.” Nearly a decade earlier, Chile had turned to policies that have since been widely emulated across the globe. The neoliberal agenda—a label used more by critics than by the architects of the policies—rests on two main planks. The first is increased competition—achieved through deregulation and the opening up of domestic markets, including financial markets, to foreign competition. The second is a smaller role for the state, achieved through privatization and limits on the ability of governments to run fiscal deficits and accumulate debt.
>There has been a strong and widespread global trend toward neoliberalism since the 1980s, according to a composite index that measures the extent to which countries introduced competition in various spheres of economic activity to foster economic growth. As shown in the left panel of Chart 1, Chile’s push started a decade or so earlier than 1982, with subsequent policy changes bringing it ever closer to the United States. Other countries have also steadily implemented neoliberal policies (pic related).
>There is much to cheer in the neoliberal agenda. The expansion of global trade has rescued millions from abject poverty. Foreign direct investment has often been a way to transfer technology and know-how to developing economies. Privatization of state-owned enterprises has in many instances led to more efficient provision of services and lowered the fiscal burden on governments.
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>However, there are aspects of the neoliberal agenda that have not delivered as expected. Our assessment of the agenda is confined to the effects of two policies: removing restrictions on the movement of capital across a country’s borders (so-called capital account liberalization); and fiscal consolidation, sometimes called “austerity,” which is shorthand for policies to reduce fiscal deficits and debt levels. An assessment of these specific policies (rather than the broad neoliberal agenda) reaches three disquieting conclusions:
>•The benefits in terms of increased growth seem fairly difficult to establish when looking at a broad group of countries.
>•The costs in terms of increased inequality are prominent. Such costs epitomize the trade-off between the growth and equity effects of some aspects of the neoliberal agenda.
>•Increased inequality in turn hurts the level and sustainability of growth. Even if growth is the sole or main purpose of the neoliberal agenda, advocates of that agenda still need to pay attention to the distributional effects.
What are /biz/'s thoughts on this new report?
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Just kill people that work at meme jobs and the world will be developed
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Inequality is a fucking meme. Would you rather have everyone become 20% wealthier or the lowest become 30% wealthier and the highest 100% wealthier? Anyone still yammering on about unequality in 2016 is just broadcasting loudly and clearly that they don't understand prosperity.
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>>1278945
Except that's not at all what's happening. The general public has gotten 2-5% poorer and the wealthy have gotten 50%+ richer.
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>>1278945
So your giving me 20% higher for everyone
Vs
100% more money to our blessed job creators
AND
30% more money for our most in need citizen
I choose option two. neoliberal policies are leading to globalism which i support, but global markets create global collapses which are bad.
I choose localized crashes.
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>>1279038
By what standard are they poorer though? Do they not have smart phones and money for a lot more calories as well as luxuries like airconditioning?
>>1279093
That's the right choice, obviously. But some people seem to still labor under the delusion that the economy is a single cake with a fixed amount of money to divide amongst the population.
There is literally zero wrong with increased inequality. It is a completely made up problem to justify bigger government. Wasteful spending, corruption and regulations strangling innovation are actual problems that face the world economy today.
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>>1279166
Wouldn't more dollars in the hand off he poorest people yield a higher multiplier rate? All the poor people who want an air conditioner would buy one boosting the bottom line of the companies owned the the upper 1%.
I always thought the worst part of inequality is that it's harder to grow the pie.
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