This month’s World Economic Outlook released
by the International Monetary Fund (IMF) only confirms that consequences of the collapse of the financial system, which started six years ago, are serious. And they are accentuated by the aging of the population, not only in Europe but also in Asia, the slowing of productivity and weak private investment.
The social consequences of austerity economics have been most visible in Europe’s southern periphery. In the UK, the coalition government has brought in sharp cutbacks in welfare state provision in the name of dealing with the financial crisis. Their impact is becoming increasingly visible.