Austerity and the Economic Crisis (Good read)

[Starry Messenger]

http://www.politicalaffairs.net/austerity-and-the-economic-crisis/

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What Marx described as "fictitious capital" has become a key element in the ruling class' preference for austerity policies. Interest, other forms of debt service, and land rents constitute some of the various forms of fictitious capital... Austerity policies are precisely designed to guarantee that such forms of fictitious capital are privileged over productive capital and that value from productive capital is extracted from the economy to meet obligations to fictitious capital. Reduction of deficits, realization of "sound" deficit-to-GDP ratios, privileging income flows to creditors over other spending priorities, privitization of public assets to extract value for private interests - all of these characteristics of austerity are designed to ensure the flow of rents to the rentier subsector and to make the state and the national economy a more reliable source of such rents.


In short -- capitalism is becoming more parasitic -- more and more of the surplus value created by workers is going, not to productive reinvestment, but to the unproductive and sometimes destructive financial sector. Austerity for the 99% is the guarantee of the continued wealth and power of this sector.

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A really great long article on austerity, what it is, its class nature and linking the austerity drive in Europe to the one in the US and the political responses in both regions. Sit down and give it a read when you have some time.