• Monthly
  • $25
  • $50
  • $100
  • $other
  • use PayPal

ONE WEEK TO DOUBLE YOUR DONATION!

A generous CounterPuncher has offered a $25,000 matching grant. So for this week only, whatever you can donate will be doubled up to $25,000! If you have the means, please donate! If you already have done so, thank you for your support. All contributions are tax-deductible.
FacebookTwitterRedditEmail

The Collateral Damage of Austerity

“Officials in France and in Brussels said on Monday that they were unhappy and dumbfounded with the no vote, but let it be known that they would hold the door open to the possibility of a compromise between Greece and its creditors.”

Dumbfounded? Why? Because the godlike power of the creditors was insulted?

Mainstream coverage of economic matters — the above quote is from the New York Times — seldom cuts very deep into the world of money, seldom questions who’s in charge, and seldom dares to suggest that an economic system ought to serve humankind rather than vice versa.

The austerity packages Greece has endured as its condition of economic bailout over the past half-decade — dictated by those who wielded financial power and were determined to profit enormously off of the suffering of Europe’s economic losers — have not only further gutted the country’s broken economy and prevented any sort of recovery toward self-sufficiency, but have shattered the socioeconomic structure of life for a huge segment of the Greek population. All of which is … you know, too damn bad. Money is as money does. The creditors have no choice but to impose severe restrictions on Greek social spending.

As Robert Kuttner wrote recently at Huffington Post, Greece’s economic comeback, including needed governmental reforms such as more effective tax collection, “would be so much easier and more effective in the context of a recovery program as opposed to a debtors’ prison.”

Much of what I read about the situation reminds me of the way too many media cover war: as both necessary and, in human terms, utterly abstract, with its consequences the stuff of separate, lesser stories, which have no bearing on the war’s national value and ongoing necessity.

The collateral damage of Greece’s austerity includes:

· An unemployment rate of more than 25 percent, and nearly double that for young people. “Meanwhile, our future flees. A quarter million university graduates have abandoned our nation. They have no choice: unemployment for those under 25 has hit 48.6 percent,” Michael Nevradakis and Greg Palast write at OpEd News.

· Pensions slashed multiple times, “two-thirds of pensioners live below the poverty line,” according to Nevradakis and Palast.

· Devastating cuts in health care, leaving nearly a million people without any, the U.K. Independent reported last year. The article quoted Dr. David Stuckler of Oxford University, lead author of a report on the crisis in the medical journal The Lancet: “The cost of austerity is being borne mainly by ordinary Greek citizens, who have been affected by the largest cutbacks to the health sector seen across Europe in modern times.” The consequences of this have been particularly devastating to the most vulnerable, with infant mortality rising by 43 percent between 2008 and 2010, and stillbirths up 21 percent.

· “And, for the first time since World War II, widespread starvation had returned,” Nevradakis and Palast write. “500,000 children in Greece are said to be malnourished. Students fainting from hunger in frigid schools which cannot afford heating oil is now a common phenomenon.”

Debtors’ prison, indeed. “Imagine,” Kuttner writes, “if the Europeans came bearing genuine technical assistance, investment capital and debt restructuring as opposed to more austerity demands.”

Imagine an economic system focused on serving human and planetary needs. Yet in predatory fiscal practice, human needs are reduced to frivolous luxuries. Where’s the profit in good schools and healthy children? As the profiteers impose austerity on the vulnerable, indebtedness becomes a condition to be mocked. Yet we are all indebted. Our lives depend on the good will of others.

In the wake of World War II, for instance, Germany was forgiven most of its Nazi-era debt. “In the 1950s, Europe was founded on the forgiveness of past debts,” Thomas Piketty and other economists point out in an open letter to German Chancellor Angela Merkel, published in The Nation. This forgiveness allowed it to make “a massive contribution to post-war economic growth and peace. Today we need to restructure and reduce Greek debt, give the economy breathing room to recover …”

And Kuttner asks us to “consider the many hundreds of billions of dollars of official aid that went to the big banks that caused the financial collapse of 2007- 2008. Their sins, and the resulting damage to the global economy, were far worse than those of Greece. Yet they were showered with official aid. That double standard is also staggering.”

A bogus moral authority seems to accompany the accumulation of wealth — a sense that one deserves it while those without wealth deserve servitude and hopelessness. Bolstering this moral authority lies the desperate need to ignore the common humanity of those who are struggling to survive.

More articles by:

Robert Koehler is a Chicago award-winning journalist and editor.

bernie-the-sandernistas-cover-344x550
Weekend Edition
October 18, 2019
Friday - Sunday
Stephen Cooper
Scientist vs. Cooper: The Interview, Round 3 
Susan Block
How “Hustlers” Hustles Us
Charles R. Larson
Review: Elif Shafak’s “10 Minutes 38 Seconds in This Strange World”
October 17, 2019
Steve Early
The Irishman Cometh: Teamster History Hits the Big Screen (Again)
Jonathan Cook
Israel Prepares to Turn Bedouin Citizens into Refugees in Their Own Country
Stan Cox
Healing the Rift Between Political Reality and Ecological Reality
Jeff Klein
Syria, the Kurds, Turkey and the U.S.: Why Progressives Should Not Support a New Imperial Partition in the Middle East
George Ochenski
The Governor, the Mining Company and the Future of a Montana Wilderness
Charles Pierson
Bret Stephens’ American Fantasy
Ted Rall
The First Thing We Do, Let’s Fire All the Cops
Jon Rynn
Saving the Green New Deal
Ajamu Baraka
Syria: Exposing Western Radical Collaboration with Imperialism
Binoy Kampmark
A Coalition of Support: Parliamentarians for Julian Assange
Thomas Knapp
The Down Side of Impeachment
Harvey Wasserman
What Really Happened to American Socialism?
Tom Engelhardt
American Brexit
October 16, 2019
Patrick Cockburn
How Turkey’s Invasion of Syria Backfired on Erdogan
Chitrangada Choudhury – Aniket Aga
How Cotton Became a Headache in the Age of Climate Chaos
Jack Rasmus
US-China Mini-Trade Deal: Trump Takes the Money and Runs
Michael Welton
Communist Dictatorship in Our Midst
Robert Hunziker
Extinction Rebellion Sweeps the World
Peter A. Coclanis
Donald Trump as Artist
Chris Floyd
Byzantium Now: Time-Warping From Justinian to Trump
Steve Klinger
In For a Dime, in For a Dollar
Gary Leupp
The Maria Ramirez Story
Kim C. Domenico
It Serves Us Right To Suffer: Breaking Down Neoliberal Complacency
Kiley Blackman
Wildlife Killing Contests are Unethical
Colin Todhunter
Bayer Shareholders: Put Health and Nature First and Stop Funding This Company!
Andrés Castro
Looking Normal in Kew Gardens
October 15, 2019
Victor Grossman
The Berlin Wall, Thirty Years Later
Raouf Halaby
Kurdish Massacres: One of Britain’s Many Original Sins
Robert Fisk
Trump and Erdogan have Much in Common – and the Kurds will be the Tragic Victims of Their Idiocy
Ron Jacobs
Betrayal in the Levant
Wilma Salgado
Ecuador: Lenin Moreno’s Government Sacrifices the Poor to Satisfy the IMF
Ralph Nader
The Congress Has to Draw the Line
William A. Cohn
The Don Fought the Law…
John W. Whitehead
One Man Against the Monster: John Lennon vs. the Deep State
Lara Merling – Leo Baunach
Sovereign Debt Restructuring: Not Falling Prey to Vultures
Norman Solomon
The More Joe Biden Stumbles, the More Corporate Democrats Freak Out
Jim Britell
The Problem With Partnerships and Roundtables
Howard Lisnoff
More Incitement to Violence by Trump’s Fellow Travelers
Binoy Kampmark
University Woes: the Managerial Class Gets Uppity
Joe Emersberger
Media Smears, Political Persecution Set the Stage for Austerity and the Backlash Against It in Ecuador
Thomas Mountain
Ethiopia’s Abiy Ahmed Wins Nobel Peace Prize, But It Takes Two to Make Peace
Wim Laven
Citizens Must Remove Trump From Office
FacebookTwitterRedditEmail