June, 13 2011, 04:39pm EDT
For Immediate Release
Contact:
Dan Beeton, 202-239-1460
Appointment of Stanley Fischer to Head the IMF Would "Institutionalize Lack of Accountability", CEPR Co-Director Says
Fischer’s Time at the Fund Coincided With Disastrous Financial and Economic Crises
WASHINGTON
Appointment of Stanley Fischer to head the International Monetary Fund (IMF) would "institutionalize lack of accountability" at the Washington-based institution, Center for Economic and Policy Research (CEPR) Co-Director Mark Weisbrot said. Fischer announced his candidacy on Saturday, and in a Wall Street Journal interview attempted to set himself apart from front-runner Christine Lagarde by emphasizing his credentials as an economist, and hinting that Lagarde would not be sufficiently qualified because she is not an economist.
"Fischer's statement that the IMF needs someone with economic training is not a good advertisement for the economics profession, considering what happened on his watch," Weisbrot said. "Some of the IMF's worst economic mistakes in its history occurred while Fischer was there."
Fischer's time at the IMF coincided with a number of serious financial and economic crises in Southeast Asia, Russia, Argentina, Brazil, and Mexico's "tequila" crisis, among others. Fischer was First Deputy Managing Director of the IMF from September 1994 to August 2001 and Special Adviser to the Managing Director from September 1, 2001 until January 31, 2002.
Weisbrot noted that the IMF's intervention in the Asian economic crisis made things worse, as even its own Independent Evaluation Office later noted. The IMF's role in Argentina was even worse, prescribing policies that prolonged and deepened the country's worst recession from 1998-2002. The IMF's intervention in Russia during Fischer's tenure led to one of the worst losses in output in history, in the absence of a war or natural disaster. In both the Russian and Argentine cases, the economies grew very rapidly post-1998 for the next decade (63 percent over six years in Argentina and 94 percent over the decade in Russia), after they had rid their countries of the IMF and its policy prescriptions.
"What makes this history even more relevant is that the IMF, together with the European authorities, is currently promoting the same policies that destroyed the Argentine economy under Fischer's watch, in countries such as Greece, Ireland, Spain, Portugal, and Latvia."
The Center for Economic and Policy Research (CEPR) was established in 1999 to promote democratic debate on the most important economic and social issues that affect people's lives. In order for citizens to effectively exercise their voices in a democracy, they should be informed about the problems and choices that they face. CEPR is committed to presenting issues in an accurate and understandable manner, so that the public is better prepared to choose among the various policy options.
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Booze Hound! Lina Khan, Not Done Yet, Targets Nation's Largest Alcohol Seller
"The FTC is doing what our government should be doing: using every tool possible to make life better for everyday Americans," said one advocate.
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The U.S. Federal Trade Commission on Thursday sued Southern Glazer's Wine and Spirits, alleging that the nation's largest alcohol distributor, "violated the Robinson-Patman Act, harming small, independent businesses by depriving them of access to discounts and rebates, and impeding their ability to compete against large national and regional chains."
The FTC said its complaint details how the Florida-based company "is engaged in anticompetitive and unlawful price discrimination" by "selling wine and spirits to small, independent 'mom-and-pop' businesses at prices that are drastically higher" than what it charges large chain retailers, "with dramatic price differences that provide insurmountable advantages that far exceed any real cost efficiencies for the same bottles of wine and spirits."
The suit comes as FTC Chair Lina Khan's battle against "corporate greed" is nearing its end, with U.S. President-elect Donald Trump announcing Tuesday that he plans to elevate Andrew Ferguson to lead the agency.
Emily Peterson-Cassin, director of corporate power at Demand Progress Education Fund, said Thursday that "instead of heeding bad-faith calls to disarm before the end of the year, the FTC is taking bold, needed action to fight back against monopoly power that's raising prices."
"By suing Southern Glazer under the Robinson-Patman Act, a law that has gone unenforced for decades, the FTC is doing what our government should be doing: using every tool possible to make life better for everyday Americans," she added.
According to the FTC:
Under the Robinson-Patman Act, it is generally illegal for sellers to engage in price discrimination that harms competition by charging higher prices to disfavored retailers that purchase similar goods. The FTC's case filed today seeks to ensure that businesses of all sizes compete on a level playing field with equivalent access to discounts and rebates, which means increased consumer choice and the ability to pass on lower prices to consumers shopping across independent retailers.
"When local businesses get squeezed because of unfair pricing practices that favor large chains, Americans see fewer choices and pay higher prices—and communities suffer," Khan said in a statement. "The law says that businesses of all sizes should be able to compete on a level playing field. Enforcers have ignored this mandate from Congress for decades, but the FTC's action today will help protect fair competition, lower prices, and restore the rule of law."
The FTC noted that, with roughly $26 billion in revenue from wine and spirits sales to retail customers last year, Southern is the 10th-largest privately held company in the United States. The agency said its lawsuit "seeks to obtain an injunction prohibiting further unlawful price discrimination by Southern against these small, independent businesses."
"When Southern's unlawful conduct is remedied, large corporate chains will face increased competition, which will safeguard continued choice which can create markets that lower prices for American consumers," FTC added.
Southern Glazer's published a statement calling the FTC lawsuit "misguided and legally flawed" and claiming it has not violated the Robinson-Patman Act.
"Operating in the highly competitive alcohol distribution business, we offer different levels of discounts based on the cost we incur to sell different quantities to customers and make all discount levels available to all eligible retailers, including chain stores and small businesses alike," the company said.
Peterson-Cassin noted that the new suit "follows a massive court victory for the FTC on Tuesday in which a federal judge blocked a $25 billion grocery mega-merger after the agency sued," a reference to the proposed Kroger-Albertsons deal.
"The FTC has plenty of fight left and so should all regulatory agencies," she added, alluding to the return of Trump, whose first administration saw
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Jayapal, who was one of 140 lawmakers to oppose the package, emphasized that the Pentagon has failed seven consecutive annual audits.
Despite being the only federal agency to never have passed a federal audit, said Jayapal, the Department of Defense "continues to receive huge boosts to funding every year. Our constituents deserve better."
As Common Dreams reported last month, more than half of the department's annual budget now goes to military contractors that consistently overcharge the government, contributing to the Pentagon's inability to fully account for trillions of taxpayer dollars.
The $883.7 billion legislation that was advanced by the House on Wednesday would pour more money into the Pentagon's coffers. The package includes more than $500 million in Israeli military aid and two $357 million nuclear-powered attack submarine despite the Pentagon requesting only one, and would cut more than $621 million from President Joe Biden's budget request for climate action initiatives.
Jayapal noted that the legislation—which was passed with the support of 81 Democrats and 200 Republicans—also includes anti-transgender provisions, barring the children of military service members from receiving gender-affirming healthcare in "the first federal statute targeting LGBTQ people since the 1990s when Congress adopted 'Don't Ask, Don't Tell' and the Defense of Marriage Act."
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Senate Majority Leader Chuck Schumer (D-N.Y.) said Thursday that the legislation "has some very good things we Democrats wanted in it, it has some bad things we wouldn't have put in there, and some things that were left out," and indicated that he had filed cloture for the first procedural vote on the NDAA.
The vote is expected to take place early next week, and 60 votes are needed to begin debate on the package.
Sen. Bernie Sanders (I-Vt.), a longtime critic of exorbitant U.S. military spending, said in a floor speech on Wednesday that he plans to vote no on the budget.
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Jayapal noted that the funding package includes substantive pay raises for service members and new investments in housing, healthcare, childcare, and other support for their families.
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By cutting military spending, she said, the federal government could invest in the needs of all Americans, not just members of the military, "without sacrificing our national security or service member wages."
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Two Democratic lawmakers sent a letter to outgoing U.S. President Joe Biden Thursday, urging him to place more checks on potential nuclear weapons use by mandating that a president must obtain authorization from Congress before initiating a nuclear first strike.
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The Constitution vests Congress, not the president, with the power to declare war (though presidents have used military force without getting the OK from Congress on multiple occasions in modern history, according to the National Constitution Center).
During the Cold War, when nuclear weapons policy was produced, speed was seen as essential to deterrence, according to Jon Wolfsthal, the director of global risk at the Federation of American Scientists, who wrote an op-ed for The Washington Post last year that makes a similar argument to Markey and Lieu.
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While nuclear tensions today may not be quite as high as they were during the apex of the Cold War, fears of nuclear confrontation have been heightened due to poor relations between the United States and Russia over the ongoing war in Ukraine, among other issues. Last month, Russian President Vladimir Putin signed a decree lowering the threshold for potential nuclear weapons use not long after the U.S. greenlit Ukraine's use of U.S.-supplied long range weapons in its fight against Russia.
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In their letter, Markey and Lieu also recount an episode from the first Trump presidency when, shortly after the January 6 insurrection, Chairman of the Joint Chiefs of Staff General Mark Milley ordered his staff to come to him if they received a nuclear strike order from Trump.
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