The purpose of austerity is to widen the gap between the rich and the rest, and between the financial economy and the real economy.
There are two ways that austerity widens the gap.  Austerity makes average people poorer.  Austerity opens the door to mass privatization of public assets.
The latter is especially important, because privatization (i.e. neo-feudalism) is what neoliberalism is all about. Why try to make a fortune via technological innovation, when you can make a much easier and quicker fortune by getting ownership of public assets? Carlos Slim Helu of Mexico became the world’s richest man when Mexican politicians gave him the national telephone service. Carlos immediately increased the phone rates until they were among the highest in the world. By contrast, Honduras President Manuel Zelaya refused to privatize the national phone system, and was therefore deposed in a US-backed coup in 2009 (overseen by Hillary).
The entire euro project in Europe is designed to crush workers, smash unions, and force the privatization of public assets. This is done via debt. Nations that do not have large trade surpluses must borrow all their money. And since they can never repay their debt in money, they must pay it in the form of privatized public assets.
The greatest fortunes of our time have come from privatizing the public domain. And the euro-scam continues because the European masses have been programmed to think that if they dump the euro that is killing them, they will die.
Socialism means public ownership. Capitalism and neo-liberalism mean private ownership, debt slavery and rent extraction. Most nations have been rushing toward capitalism and neo-liberalism since the 1970s.
Medicare and Social Security have not yet been privatized, which means that 1.1 trillion dollars are going to “waste” each year, instead of going to the criminals of Wall Street.
It will be Hillary’s job to correct this when Wall Street installs her in the White House. Nobody believes that she will get away with it. This is always the pattern. No one believes that a criminal leader would be so brazen as to do this or that – until it happens. Before 9-11, no one would have believed that a President would kill 3,000 Americans in order to create a pretext for permanent war. Before Obama, no one would have believed that a U.S. President would order U.S. citizens to be assassinated, or incarcerated for life without charges or trial.
As soon as Hilary is installed in the White House, we will see a radical upswing in the lies.
Here’s an example from The Atlantic, which started as a magazine in 1857.
Two options exist: increase revenues or cut benefits. The problem is figuring out which is fairer.
I’ve said so many times that Social security doesn’t need “saving” that I will spare you yet another rant. Rodger Mitchell has also covered it hundreds of times.
The entire article is based on the lie that FCIA taxes pay for Social Security. Its author recommends raising the FICA tax. This will rob more money from each worker’s paycheck, and will thereby further depress the economy.
Payroll taxes can be raised in order to cover Social Security costs. Currently, the tax rate is 6.2 percent for both employee and employer, totaling 12.4 percent. A Gallup poll found that half of Americans would be in favor of raising taxes in order to fund Social Security, if the alternative was reducing benefits.
Most Americans oppose Bernie Sanders’ plan to raise taxes to pay for universal health care (even though tax increases are not necessary). However they favor paying more taxes to keep their Social Security.
What the masses refuses to understand is that…
 Taxes do not pay for Social Security
 Hillary will privatize Social Security no matter how high the tax is raised. One trillion dollars a year makes it inevitable.
The problem is not the rich, but people around you in your everyday life. The problem is mass stupidity. It’s everywhere.
Consider Ukraine. Why are international Jews like George Soros allied with Nazi groups in Ukraine? Because the Ukrainian Nazis fantasize that Russia is “controlled by Jews.” Ukrainian Nazis don’t care how impoverished they become, as long as they can resist “Putin and his Jews.” Who put this idea into their heads? The oligarchs, and international Jews like Soros. While the masses hate “Putin and his Jews,” the oligarchs and international Jews use neo-liberal “reforms” to privatize everything in Ukraine, so they can charge rent on the formerly public assets. To distract the masses, they foment hatred of “Putin and his Jews.”
It’s the same in places like Latvia, where kleptocrats and tell average Latvians that no matter how impoverished they become, it’s still better than being under the heel of “Putin and his Jews.” (25% of Latvians are ethnic Russians, and 5% of those Russians are Jews.) And so, while average Latvians are busy attacking ethnic Russians and Jews in Latvia, the kleptocrats and rich outside Jews are stealing everything.
The issue here is not Jews, but mass stupidity. In other European nations, the masses are so busy hating refugees that they cannot unite against the rich elitists who are driving them all into the dirt. In the USA, mass hatred of Blacks, Latinos, and refugees serves the same function.
Meanwhile we have this lying bimbo at The Atlantic who has no training in economics, but who says that Social Security taxes must be increased, and / or benefits must be cut. Otherwise Social Security will be “unsustainable.”
She concludes her article by saying, “Maybe there’s an answer we haven’t considered yet. Drop your thoughts into an email to firstname.lastname@example.org.”
The answer is that Social security doesn’t need fixing, since it could never become insolvent, even if payroll taxes were dropped to zero. But no matter how carefully and courteously I explained that, my e-mail would be ignored.
And so we come back as always to the central issue.
QUESTION: Why is there so much poverty and inequality in the world?
ANSWER: Because that’s what most people want. Quite literally (no exaggeration) most people would rather die of poverty than stop pretending that the U.S. government is “bankrupt.”
By the way, if payroll taxes supposedly pay for Social Security, then why must retired beneficiaries pay federal taxes on their benefits? In fact thirteen states impose an additional tax on Social security benefits: Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, North Dakota, Rhode Island, Utah, Vermont and West Virginia.