---------- Forwarded message ---------- From: Stuart Wulff <[email protected]> Date: Mon, Jun 15, 2015 at 11:48 PM Subject: Recent BALTA commentary and new IMF report To: Angela Espinosa Salazar <[email protected]>, Angela Espinosa Salazar <[email protected]>, Brent Mansfield < [email protected]>, Byron Miller Hello everyone, Thanks for your many email comments related to the SSHRC decision on our funding application. We do appreciate the support. Once we receive SSHRC’s explanation for its decision, i.e. the adjudication committee evaluation, we will circulate that to you and will also as co-leads be considering our options. The IMF has issued a new report today which analyzes the development and economic growth implications of income inequality and increasing the income of the lowest 20% of income recipients versus increasing the income of the highest 20%. Contrary to the neo-liberal economic policy being followed by most governments these days, they find that increasing the income of the lowest 20% has the most positive effect on economic growth. Further, they suggest that increases in income inequality and stagnant to dropping income for the middle and lower income classes may actually contribute to economic crises such as that experienced in 2008. They specifically suggest that ‘trickle down’ economics doesn’t work. Their policy prescriptions include “raising the income share of the poor, and ensuring there is no hollowing out of the middle class. To tackle inequality, financial inclusion is imperative in emerging and developing countries while in advanced economies, policies should focus on raising human capital and skills and making tax systems more progressive.” Echoes of Thomas Piketty. One wonders how the IMF report squares with what is being demanded of Greece by its creditors…. Though in some fairness to the IMF, it is the one member of the troika that has agreed the Greek debt load is unmanageable and that debt relief must be a part of any solution. However, even discussion of debt relief has been adamantly stymied by the European parties in the troika. The report is available free (pdf) at: http://www.imf.org/external/pubs/cat/longres.aspx?sk=42986.0 Stuart