Austerity degrades industrial capacity and social well-being

Ann Pettifor considers the importance of the IMF’s surprising repudiation of austerity and regards it as a vindication of those who have argued for alternative policies (aka Plan B).‘In a recession the only means to improve the public finances is for the government to invest and create work for both firms (think of the construction sector) and the unemployed. Public investment in sound projects will generate income - wages, salaries and profits. Newly employed workers will spend their income and this will further boost activity and revive the private sector. Confidence will return across the economy; taxes paid on incomes will increase the government's revenues and lower unemployment will mean lower government spending on benefits’ http://www.huffingtonpost.co.uk/ann-pettifor/imf-austerity-_b_2004700.html