Left economists slam IMF “mixed messages” on the UK economy

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By John Millington

INTERNATIONAL financial powerhouses have sent a mixed message to Britain today to use quantitative easing, increase spending on infrastructure and temporary tax cuts.

The International Monetary Fund along with the OECD urged the government to move to Plan B on the economy featuring temporary tax cuts and increased infrastructure spending to support the economy in case of a collapse in the Eurozone.

In a sideswipe at the Tory led coalition’s addiction to spending cuts, the IMF’s managing director, Christine Lagarde said: “If the economy turns out to be significantly weaker than forecast, fiscal easing should be considered… measures should be focused on supporting growth and employment.”

But reflecting the confusion gripping the voices of international finance capital at the moment, Ms Lagarde then praised Britain for it’s deficit reduction plan, which has seen a huge rise in unemployment.

“Substantial progress” has been made, she added, in balancing Britain’s books.

Fears of an all out collapse of the Eurozone political project were further increased today with OECD representatives stating officially that the area was close to “severe recession” which would have crippling effects on the rest of the world.

But economic experts have slammed the IMF proposals as failing to deal with the heart of the matter – the crisis of capitalism.

Speaking exclusively to the Dreadnought, Professor Roger Seifert said: “By 2012 all was revealed: the crisis was one of the capitalist system and no amount of post hoc regulation, hand wringing, low interest rates, quantitative easing, demands for belt tightening, and massive finger pointing and blame deflection could mask the grim realities that the Euro was built on heroic assumptions about growth and German trading might, that monetarist-style solutions had failed, and that voters were turning against smug elites and their myopic vision of restructuring and austerity.”

In a rallying call to trade unionists, he added: “The labour movement needs to fight for a jobs and growth programme in which unemployed building workers are paid to use the skills to build houses for the homeless; unemployed graduates are employed in state sector jobs as teachers and civil servants, nurses and social workers, and managers; and immediate investment is needed in education, skills and research, exporting industries, and infrastructure improvements.”


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