[P2P-F] Fwd: Recent BALTA commentary and new IMF report

Mon Jun 15 18:52:46 CEST 2015

---------- Forwarded message ----------
From: Stuart Wulff <stuartwulff at shaw.ca>
Date: Mon, Jun 15, 2015 at 11:48 PM
Subject: Recent BALTA commentary and new IMF report
To: Angela Espinosa Salazar <A.Espinosa at hull.ac.uk>, Angela Espinosa
Salazar <angela.espinosa.salazar at gmail.com>, Brent Mansfield <
brentmansfield at gmail.com>, 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
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