Economics as Religion (AFL-CIO blog on Greece) --Socialist Progressives Group [View all]

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http://www.aflcio.org/Blog/Global-Action/Economics-as-Religion

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But, beyond fiscal austerity, the IMF and the EC insist that Greece cannot get on the right track unless it institutes “structural” reforms to its economy. Here, the IMF and EC mean creating an unfettered capitalist state. Greece must weaken its collective bargaining structures; lower its labor standards and wages, so that the Greek people must be forced to bow to the will of the market. This is borne of a view that the Greeks are profligates who must be taught the value of hard work and repay their debts. More importantly, this sacrifice of the Greek people is necessary to discourage people in Spain, Portugal and Ireland from staging similar revolts against the neo-liberal order demanding a different reconciling with the debt crisis.

This is religion, because the IMF’s own current research says that inequality hurts economic growth. And, further, it is the IMF’s own current research that says that unions, in particular, are vital to combating inequality. Taking actions based on faith in the unseen and not on empirical evidence is the definition of religion or superstition.

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In the U.S. we must take the side of Greece in this fight. It is in our interest, as the immediate problem of the instability this is causing is a rising dollar that will hurt U.S. exports and jobs. And, we can never be sure of the interrelated nature of financial collapses since so much of the banking sector remains in the shadows; with global derivatives trading at values greater than global output.

More importantly, we must also revolt against this economic order. It is the same order that saved JP Morgan Chase, but let Detroit and now Puerto Rico fail. It is the same religion that would sacrifice the earnings of American students with rising student debt and de-invest in public higher education. It is the same religion that would sacrifice American jobs and labor standards and back the Trans-Pacific Partnership. We must see these as the same struggle to restore sanity and purpose to role of government and its servant, the economy.

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