Do Budget Cuts Lead to Growth? The Economics and Politics of Austerity
Tuesday, December 13, 2011 from 8:30 AM to 10:00 AM (EST)
New York, NY
As the global economic crisis continues, there are ever-increasing calls for austerity measures as a solution to economic problems. “Austerity” is usually interpreted as one-sided ‘belt-tightening’ – that is, radical cuts to government spending with little balance in terms of targeted tax increases. Greece, Ireland, Italy and the UK are now following this austerity path.
In the United States, we face the prospect of drastic cuts to the federal budget, even as the economy teeters on the brink of another recession.
How is it that draconian budget cuts have become the dominant policy prescription? Why have so many economists and policymakers supported the illogical contention that cutting public sector jobs and spending will spur employment and consumption? Are there not other explanations?
Despite the dominant voices, there are economists who believe that austerity is not a cure for slow growth. Indeed, they believe it is likely to make things worse.
Join us for a lively discussion about the global economics and politics of austerity, with an expert panel of faculty from across The New School. Panelists will discuss the deep divide among economists around questions of austerity, and analyze the politics and economics of austerity in developed and developing countries. There will be substantial time for discussion, so come with your questions and comments.
Panelists and Presentations:
“Austerity and Growth in Economics”
William Milberg, Professor of Economics and Chair, Department of Economics, NSSR
"Congressional Supercommittees and the End of Berlusconi: the US and Europe”
Richard McGahey, Professor of Professional Practice, Public Policy and Economics, Urban Policy Program, Milano School
“What Can We Learn from Developing Countries?”
Michael Cohen, Professor of International Affairs and Director, Graduate Program in International Affairs, Milano School