The schizophrenic IMF has declared the world has a global jobs crisis:
AMERICA and Europe face the worst jobs crisis since the 1930s and risk ''an explosion of social unrest'', the International Monetary Fund has warned.
''The labour market is in dire straits. The Great Recession has left behind a wasteland of unemployment,'' said IMF chief Dominique Strauss-Kahn at an Oslo jobs summit with the International Labour Federation.
A joint IMF-ILO report said 30 million jobs had been lost since the crisis, three-quarters in richer economies. Global unemployment has reached 210 million. ''The Great Recession has left gaping wounds. High and long-lasting unemployment represents a risk to the stability of existing democracies,'' it said.
The study cited evidence that victims of recession in their early 20s suffer lifetime damage and lose faith in public institutions. A new twist is an apparent decline in the ''employment intensity of growth'' as rebounding output requires fewer extra workers. As such, it may be hard to re-absorb those laid off even if recovery gathers pace. The world must create 45 million jobs a year for the next decade to tread water.
How does this square the IMF demanding austerity measures, gutting employment benefits, wages and security? It doesn't.
Economist Paul Krugman picked up on the inconsistencies of the IMF declaring a global jobs crisis while recommending austerity agendas:
That’s written in international organization speak, but it seems like a response to this post; and it even seems as if the IMF may be sorta kinda endorsing the view that austerity in times like these may be self-defeating, even in terms of purely fiscal concerns.
So, it seems as if there is something in the IMF charter that inhibits the kind of craziness that has infected the OECD and the ECB. Yes, there is a sanity clause!
Really? Well, maybe the IMF has multiple personality disorder for they are speaking out of both sides of their mouth. One cannot demand austerity and then turn around and say this:
A recovery in aggregate demand is the single best cure for unemployment.
(Unless of course you are a Republican or Glenn Beck spinning economic noise nonsense).