Kitchen Table Economics: What is Austerity?

In economics, austerity is the policy of reducing government spending by cutting social services such as health care, education, food assistance, and other welfare assistance.  Governments reduce spending by cutting money for these and similar services. 

At the federal level, Republicans seek austerity by cutting social Security and Medicare and through the sequestration.  In the case of state governments in the U.S., public tax money is used for police, fire fighters, park services, nurses, doctors, social workers and health assistants.  Austerity programs cut these services.

In the current economic crisis, the governments of Ireland, Greece, Italy, Spain and Portugal have implemented austerity programs and cut their budgets.  This policy created more unemployment and made the recessions in these countries worse.

In the U.S. most states must produce a “balanced” budget. During the economic crisis fewer items were purchased such as clothes, cars, and homes and more people were out of work - thus they paid fewer taxes.  Since the states had less money from taxes, they adopted austerity policies and cut employment and public services.  They cut the services known as the social safety net, food assistance, child care and other supports. 

Austerity policies can be counter-productive because reduced government spending can increase unemployment and thus cost more money for unemployment insurance, food assistance, and other safety net programs. These cutbacks made the recession worse and last longer.

While unemployment remains high and economic growth slow, the government should not impose austerity measures that reduce essential programs that benefit working people and that shred the safety net for the most vulnerable. Rather, government policy should prioritize investments in job creation, public education and healthcare reform, while raising essential revenues by taxing the large corporations and wealthiest citizens who can afford to pay.


Be the first to comment


Starting a Local Chapter from Scratch (9pm Eastern)

October 04, 2016 · 5 rsvps
Webinar, RSVP required for sign in information

So you are now a member of DSA, but there is no local chapter where you live. You are thinking of starting a local chapter, but you're not quite sure how to do it.

In Starting a Local Chapter from Scratch you will learn:

  • how other locals got started in recent years
  • how to find out who is already a member
  • the importance of a comrade
  • how to recruit new members
  • the importance of a mentor
  • how to become a recognized organizing committee
  • how to become a chartered local
  • what works best to bring new people in.

Join us for our latest organizing training for democratic socialist activists: DSA’s (Virtual) Little Red Schoolhouse.

Instructor:

  • Steve Max, DSA Vice Chair and one of the founders of the legendary community organizing school, The Midwest Academy

Training Details:

  1. Workshops are free for any DSA member in good standing.
  2. You need a computer with good internet access.
  3. Your computer must have preferably headphones or else speakers; you can speak thru a mic or use chat to "speak".
  4. If you have questions, contact Theresa Alt talt@igc.org 607-280-7649.
  5. If you have very technical questions, contact Tony Schmitt schmittaj@gmail.com 608-355-6568.
  6. You can participate in every webinar or just attend once in a while.
  7. Workshops will generally be on weekends or evenings.
  8. Participation requires that you register at least 45 hours in advance -- by midnight Sunday for Tuesday's webinar.

NOTE: This training is scheduled for 9:00pm Eastern Time (8pm Central, 7pm Mountain, 6pm Pacific, 5pm Alaska, 3 pm Hawaii).

Share

DSA New Member Orientation Call

October 19, 2016 · 12 rsvps
DSA New Member Orientation

You've joined DSA - Great. Now register for this New Member Orientation call and find out more about our politics and our vision.  And, most importantly, how you can become involved.  8 PM ET; 7 PM CT; 6 PM MT; 5 PM PT.

Share