Presentation on theme: "The Dangers of Austerity in Europe and the U.S. Mark Weisbrot, Co-Director Center for Economic and Policy Research."— Presentation transcript:
The Dangers of Austerity in Europe and the U.S. Mark Weisbrot, Co-Director Center for Economic and Policy Research
Austerity & GDP Growth
Austerity & Jobs
Myth: The US is just a bystander in Europes austerity Truth: We have power at the IMF.
Unlike Greece, the U.S. debt crisis is manufactured Short term deficit is due to recession – revenues fall and spending increases – and weak recovery Long term deficit is due to health care spending (driven by private sector health care costs
Real crisis is 25 million unemployed, involuntarily working part-time, or dropped out of labor force U.S. needs further stimulus, job sharing, and other measures to get unemployment back to normal levels; health care reform to eliminate long term deficit