Austerity Still An Issue. Why?

(10 am. – promoted by ek hornbeck)

Cross posted from The Stars Hollow Gazette

Austerity was thoroughly trounced by a couple of university grad students who discovered major omissions in the much touted study by a couple of Pete Peterson’s paid cronies. So why are we still even talking about it? Good question that no one so far has asked our fearless leader in Washington.

Up host Steve Kornacki discussed whether the elite consensus on austerity has started to shift and if there is any effect on the opinions in Washington. His guests Josh Barro, Columnist, Bloomberg View; Jared Bernsein, former economic adviser to V.P. Joe biden; Lori Montgomery, Economic Policy Reporter, The Washington Post; and Heather McGhee, Vice President, Demos; examine the lessons that can be learned from Europe’s austerity experience and what the US economy will look like if it continues on the austerity path. The panel also discussed how conservative have backed away from cuts to Social Security shifting their focus to tax reform, controlling spending through cost efficient measures and the roadblocks to getting it done.


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  1. TMC
  2. terryhallinan

    Paul Krugman is an odd man out in every panel discussion I have seen.

    FDR, the vaunted champion of Keynesianism, actually attempted first to outdo Hoover with austerity and later nearly threw us back into the depths of depression with efforts to balance the budget.

    My mother revered the man.  I found that most odd and do today.

    The problem with Keynesianism is that it has never been tried, reports Krugman.

    Indeed so.

    Best,  Terry

  3. Charles S McLain

    Austerity measures are typically taken if there is a threat that a government cannot honor its debt liabilities http://bit.ly/12b0Jxo. And need I say more on this?

  4. TMC

    How the Financial Crisis Created the New Third World

    Austerity has actually exacerbated the Eurozone/Euro crisis. Even the IMF has recognized this.

    The other problem is the euro itself, which even its chief architect has admitted was flawed from the start.

    The US, like England, is the author of its own misery, since each has its own sovereign currency

  5. terryhallinan

    Of course that is true if congressional action forbids it.

    But only then.

    It is not the same for European countries trying for bailouts to remain in the Euro.  Their only option is to dump the euro.

    Either way, the results are catastrophic for them.

    And austerity is catastrophic for us but only by our own doing.

    Best,  Terry

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