Conquest’s Second Law of Politics comes to the IMF

Conquest’s Three Laws of Politics:

1. Everyone is conservative about what he knows best.

2. Any organization not explicitly and constitutionally right-wing will sooner or later become left-wing.

3. The behavior of any bureaucratic organization can best be understood by assuming that it is controlled by a secret cabal of its enemies.

Latest thinking at the IMF

Instead of delivering growth, some neoliberal policies have increased inequality, in turn jeopardizing durable expansion …

The evidence of the economic damage from inequality suggests that policymakers should be more open to redistribution than they are. Of course, apart from redistribution, policies could be designed to mitigate some of the impacts in advance—for instance, through increased spending on education and training, which expands equality of opportunity (so-called predistribution policies). And fiscal consolidation strategies—when they are needed—could be designed to minimize the adverse impact on low-income groups. But in some cases, the untoward distributional consequences will have to be remedied after they occur by using taxes and government spending to redistribute income. Fortunately, the fear that such policies will themselves necessarily hurt growth is unfounded (Ostry, 2014).

Of course, it helps when you have the ‘neoliberal’ straw man handy to blame for woes caused overwhelmingly by statist intervention in market processes.

 

 

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About Stebbing Heuer

A person interested in exploring human perception, reasoning, judgement and deciding, and in promoting clear, effective thinking and the making of good decisions.
This entry was posted in Poor reasoning, Straw Men, The Mind & Society. Bookmark the permalink.

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