Editorial

Abstract

One of the forces that generate the tendency to stagnation is the policy of generalized austerity. This policy has been the element that has accentuated the difficulties. Not only for the more than erroneous proclivity of the governments to cut all the expenses that constitute a brake to the fall of the demand, in particular the social expense, but also because those governments have been let drag, during the vortex of the financial crisis, to the irrational transfer, without measure, of resources to the financial sector. These strategies, together with the budget cuts, the fall in productive investment and the funds destined only to stop the financial losses of the most concentrated segments of the financial markets, have been formed as the supposed key to overcome the crisis, without any result.

This situation could further worsen populations in general, not only those who are living with greater rigor the rattles of crisis, but those who have maintained some growth, despite the strong concentration of income, wealth and capital. Perspective that puts the world economy in the face of increased uncertainty.

The present number 15 of www.olafinanciera.unam.mx includes several perspectives that analyze the negative effects of these strategies. It can be highlighted, in the various collaborations, that it is not a new strategy, but that it has been present for some time, but in the context of the crisis they are gaining more ground, without reversing the evident and sustained economic, social and political deterioration. What is surprising is that it remains the only response to the crisis by the vast majority of governments. This strategy has resulted in the financial system becoming increasingly powerful, now in the process of dominating the economy and society in a comprehensive manner. Several authors in this issue analyze and confirm that the power of financialization maintains a tendency to dominate all economic activities, as well as how governments have been dynamic and definitive agents in this process. Milford Bateman analyzes and argues the above, showing how a great lie became absolute truth: the supposed benefit of microfinance. Which not only have destroyed the fragile economy of poor countries, but have worsened the wage, labor and social conditions where they have been installed. In addition, the role played by public policies is analyzed, by allowing themselves to be carried away by theories in mode, driven by the dominant economic and political organizations and interests, which have only benefited the financial system.

The authors Mendoza, Delgado and Castellanos also analyze this process from the perspective of the federal government, the Bank of Mexico and the large company General Motors, model in the past, but now immersed and promoting financialization. Process that exposes the long-term policies that are known as austerity policies.

The Classics section reproduces a text by Professor Alain Parguez, published more than twenty years ago, where he emphasizes the disadvantages of austerity policies. And it reveals the perverse framework of this policy, which punishes the most vulnerable and rewards the concentration of wealth, and that in that trajectory inhibits economic growth.