This was an incisive post from B. Gray, which I thought deserved much more attention:
Austerity has two parents: greed and fear, both of which are powerful motivators among the wealthy elites and the politicians that do their bidding.
Greed: Austerity promotes privatization of public services and assets, and increased private debt, all of which help transfer economic surpluses to the wealthy elites in the financial sector.
Fear: Money is how real resources, and by extension, power, are allocated in the economy. Elites fear if the public understood MMT and the power of the government purse, it would lead to anarchy in the allocation of real resources, which would lead to a reduction in the elites share of resources, as well as their influence in the political process.
Unfortunately a proper government response to the economic devastation of the pandemic would expose the fraudulent nature of the austerity narrative and would represent a full frontal assault on the neoliberal paradigm.
Very strong armour indeed….
I concur with all this and think we should all take on board particularly, that important sentence, repeated below:
“Money is how real resources, and by extension, power, are allocated in the economy.”