The second part of The Body Economic brings us to familiar times: The Great Recession. Iceland and Greece are compared for the way they implemented different policies after the banking crisis, and those decisions had immense impacts on the citizens of those countries. Reading the chapter on Iceland was so interesting, as I had not known that the government essentially brought the issue of austerity and social programs to the people.
It seems obvious that ordinary people should not have to pay for the mistakes of rich bank executives who invested private money in risky investments. The idea that the government’s money should be used to repay private investors of a bank is ridiculous. But that would have happened, had Iceland followed the austerity recommendations of the IMF. Thankfully, it was brought to a vote, and the exact opposite occurred.
I really liked the way the authors brought in the mindset of philosopher John Locke and economist Milton Friedman to illustrate the world’s opposition to Iceland’s democratic move. Locke’s theory of the “tyranny of the majority,” which I had previously thought of as true in just about all cases, becomes such an oppressive view when looked at from the perspective of public health. It basically assumes that people are too stupid to vote for policies that will benefit them, which is ironic, because the “Wall Street option,” austerity, has been shown to be more deadly than anything the people voted for. Iceland’s economic recovery was a direct result of the decision to reject austerity, and put the people first. Allowing the banks to go under, instead of believing in the “too big to fail” mantra of the US, allowed Iceland to rebuild its economy, and encouraged accountability in the new banks that are now in Iceland. And that is before mentioning any of the health benefits of rejecting austerity. Perhaps we should take a leaf out of Iceland’s book.
In contrast, the situation in Greece broke my heart. The continued austerity recommendations from the IMF has caused such a terrible health and economic situation in the country, and it’s impossible to know how far-reaching the consequences will be. The rates of suicide and HIV are extremely alarming, and the social unrest is terrifying, but understandable.
Recent news says that Greece is slowly recovering, and at least according to ABC news (http://abcnews.go.com/International/wireStory/government-finances-improved-europe-2013-23435242), things are looking better. But you cannot bring back those whose lives were lost because of certain policies, and that is extremely sad.
I find it ironic that austerity, which looks at economy first, and health second, does not even improve the economies of those countries in which it is implemented. It is based upon principles like cutting spending, which sound effective, but sadly are only so in theory. The IMF really needs to take a look at what austerity has done to human life, and reevaluate their recommendations.
