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- Title
DISSENT & DEVELOPMENT IN THE CULTURAL RENEWA OF BALKAN COMMUNITIES.
- Authors
Harrison, Fred; Gaffney, Mason
- Abstract
Western governments and the International Monetary Fund deployed "austerity" policies in response to the financial crisis of 2008. The authors explain that, far from laying the foundations for sustainable growth, the austerity strategy is deepening the crisis by eroding social cohesion without delivering full employment. Austerity is a method for short-term management of chaos in the markets, with the high costs carried by the most vulnerable sections of society. The authors elaborate a financial model that would restructure the pricing mechanisms in both the public and private sectors on principles designed to diminish the cyclical booms and busts that are driven by the misallocation of what Alfred Marshall called the "public value". Fiscal policy is identified as the one viable strategy for restructuring the economies of Eastern European. Transition to a new financial settlement would empower people and their enterprises to work towards balanced growth while simultaneously renewing their communities. This model is grounded in the classical thesis that, to achieve optimum use of all productive endowments (land, labour and capital), people should pay for the benefits which they receive from society. The practical effect would be to socialise economic rents, which enables policy-makers to privatise earned incomes and the profits from saving and investing. Abolishing taxes that damage the health and wealth of nations is identified as the central remedy for pathologies that will otherwise remain as dangerous flashpoints for populations under stress.
- Subjects
AUSTERITY; INTERNATIONAL Monetary Fund; GLOBAL Financial Crisis, 2008-2009; SOCIAL cohesion; FISCAL policy; MARSHALL, Alfred, 1842-1924
- Publication
Transition: Journal of Economic & Politics of Transition / Tranzicija: Časopis za Ekonomiju i Politiku Tranzicije, 2014, Vol 16, Issue 34, p1
- ISSN
1512-5785
- Publication type
Article