Since the early 1980s, central banks and governments of top capitalist countries have been attempting to save their beloved system. Responding to the collapsing profit rate was their ultimate goal and drove economic and social policy for 40 years. To save our economy and solve the social, health, and environmental crises we now face we must reverse course.
The first Social Impact Bond (SIB) to be tested in New York City has failed to deliver on its promises. The program the Bond was invested in, saw millions of dollars spent counseling youth in prison with the goal of reducing their chances of re-offending.
A new study by the Parkland Institute details the devastation to Alberta's social services sector following decades of experimentation by the provincial Tories. The main goal of many of these initiatives was to cut government spending on social welfare and offload provision to anyone willing to take them on – for-profit and not-for-profit organizations alike.
Social Impact Bonds come from the same dark place in the financial world as complex derivatives, the trading of which lead to the great financial crisis. They are a way for the great gamblers of financial markets to place bets on 'success,' in this case betting on the delivery of social services on the cheap. It is a disaster in the making for anyone who actually needs support.