Bill Mitchell — Neo-liberal myths constrain our understanding of poverty

I was on a panel last night discussing the causes of poverty in Australia. The panel was rather diverse with housing, welfare and other representatives. There was a crowd of around 400 I believe. The format was difficult given that the panel of six was assembled in line at a table so could not see each other easily. But the real problem was that the facilitator, a national journalist, who had the role of asking questions to the panellists, chose to assert the standard neo-liberal macroeconomic myths in response to statements I made with respect to the causes and solutions to poverty. I was confronted with as-if facts such as “they have to get the money from somewhere before they can spend” in response to questions about public debt eventually becoming too large and foreigners funding our national (currency-issuing) government. I thought a facilitator was not meant to have an agenda but in this case holding out these neo-liberal myths perpetuated the standard agenda which guarantees that poverty will continue to worsen. There is a lot of work to be done before people will identify these neo-liberal myths as non-knowledge and readily understand that national, currency-issuing governments such as in Australia have no financial constraints and they spend out of ‘thin air’. Once that knowledge is accepted a whole new world opens up that allows us to see the path to reducing poverty and inequality.

 "I thought a facilitator was not meant to have an agenda…" The person was not a facilitator but a gatekeeper. 

The correct question is whether the real resources are available for public purpose and if not, why not? 

No one has any difficulty with this regarding national security and projecting power, for example. Why is this different for creating a welfare state in which public purpose is viewed as the common good defined as a highly functional society with no dysfunctional aspects or sectors?

The simple answer is incorrect assumptions. The next question why these assumptions are wrong. Is it ignorance or narrow interest prevailing?

Bill Mitchell – billy blog
Neo-liberal myths constrain our understanding of poverty
Bill Mitchell | Professor in Economics and Director of the Centre of Full Employment and Equity (CofFEE), at University of Newcastle, NSW, Australia