Austerity Watch

The dire threat facing America, according to Mitt Romney and Republicans this week, is debt, not mass unemployment. more »

Deficit theater is coming to DC tomorrow, with a well-funded "fiscal summit." The plot summary is that we have Deficit Trouble - Right Here In River City! so to fix it we need to cut Social Security and Medica more »

On Tuesday, May 15, one of America's wealthiest men, Peter G. Peterson, will use his foundation's money to lecture the rest of us about why the federal deficit is the most serious problem facing our country. more »

Heard about the meeting that's being held to decide your economic future? If the answer's "no," don't feel bad: That's because you weren't invited. But Tim Geithner was. So was Rep. more »

Well, it's Springtime in DC. Time for the Peter G. Peterson Foundation's annual event. more »

Europeans across the continent are rising up against austerity policies — turning out politicians who enforce them, no matter what their party allegiance. Yet even as the European public rejects austerity, Washington elites increasingly favor it. If pursued, however, it could well face a similar public rejection here.

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What's end of the line for austerity? We've gone through despair, desperation, and indifference. The latter feeds the first two, creating what Robert Reich calls "a tinderbox society," as "those collecting capital gains" demand austerity, resulting in "rising frustration over the inability of most people to get ahead. That frustration, Reich notes, is fanning the flames of public anger in Europe, fueling student revolts in Chile, and could plunge China into turmoil.

Where austerity goes, violence and unrest follow. The danger lies in the unpredictable nature of public anger, once ignited. When sparks fly, there's no telling where they catch fire or who will get burned.

It's a combustible concoction wherever it occurs: Increasing productivity, widening inequality, and rising unemployment create tinder-box societies.

Public anger and frustration can ignite in two very different ways. One is toward reforms that more broadly share the productivity gains.

The other is toward demagogues that turn people against one another.

To borrow a line from Bonnie Tyler's 1983 hit single, austerity means "we're living in a powder keg, and giving off sparks.

Except there is no more "we," anymore. As austerity-engineered scarcity makes day-to-day survival, people see their fates as divorced from one another. Solidarity gives way to detachment, an "everyone for him or herself" becomes the general , if you want to survive.

Depending on your point of view, the results on austerity are in. more »

When Greek prime minister Lucas Papademos, in his statement concerning the austerity-driven suicide of 77-year-old pensioner Dimitris Christoulas, called on Greeks to "support those next to us who stand in despair," he either missed or ignored the same point that austerity boosters here at home blithely ignore. How can people "support those who stand next to us in despair," when so many have already reached that last stop before oblivion, and those who haven't yet are being driven there down a wide road called "Desperation"?

What else is Papademos — appointed to ensure that Greeks got austerity, and got little or no say in the matter — to do? He's there to make sure the people he really works for get what they want. So, the prime minister has to ignore that Greece's Independence Day celebrations required tight security — such that citizens were banned from entering Syntagma Square the very square where Dimitris Christoulas put a bullet in his brain — because of very real fears that anti-austerity protesters would attack politicians. He has to ignore the reason why 4,000 police officers (plus more than 800 riot police) had to lock down the city of Athens, to ensure things went off without a hitch.

Just as his government ignored the tens of thousands of protestors on its doorstep, to pass he austerity measures, had to recognize the despair inherent in Dimitris Christoulas' suicide while ignoring the desperation that drove him to it, and how austerity has made desperation part of every day life for many Greeks.

Are we "going the way of Greece?" Should we cut spending to head off a "debt crisis" here? more »