Inflation Is Falling. So Why Are the Fiscal Austerians Back in the Headlines? ( www.thenation.com )
The not-so-secret fact about America’s economic “success” over the past 40 years is that its gains have been exceedingly unevenly distributed in favor of the country’s wealthiest. Accustomed as they are to sustaining and increasing their economic gains at the expense of America’s workers, any marginal change that reduces their advantage invariably leads to the return of the old nonsensical shibboleths: The country is facing national bankruptcy; entitlements like Social Security and Medicare must be therefore “reformed” (i.e., cut). All the while, billions continue to be appropriated for wars of choice and the question of national solvency is never raised.
It is in this context that we ought to consider the conveniently timed calls for increased fiscal austerity. Those calls should be ignored—especially if Biden wishes to retain any hope of winning the next election. Why? Let’s state the obvious: Higher unemployment and a recession during an election year is hardly good for a political incumbent. More fundamentally, the notion of a collective in society is necessary for social stability and cohesion. Attacking the nation’s last, best remaining social safety net will destroy what’s left of the country’s social cohesion. Rising inequality undermines the growth potential of a nation and introduces greater propensity to economic and political crisis. The policy preferences embedded by the fiscal austerians are specious arguments that will only create more economic and political chaos.
