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.

DSA Queer Socialists Conference Call

July 27, 2017
· 40 rsvps

Join DSA's Queer Socialists Working Group to discuss possible activities for the group and its proposed structure. 9 pm ET/8 pm CT/7 pm MT/6 pm PT.

 

Film Discussion: Pride

September 10, 2017
· 19 rsvps

Join DSA members Eric Brasure and Brendan Hamill to discuss the British film Pride (2014). It’s 1984, British coal miners are on strike, and a group of gays and lesbians in London bring the queer community together to support the miners in their fight. Based on the true story of Lesbians and Gays Support the Miners. The film is available for rent on YouTube, Amazon, and iTunes. 8 ET/7 CT/6 MT/5 PT.

Film Discussion: Union Maids

September 24, 2017
· 19 rsvps

 

Join DSA member and labor historian Susan Hirsch in discussing Union Maids (1976). Nominated for an Academy Award, this documentary follows three Chicago labor organizers (Kate Hyndman, Stella Nowicki, and Sylvia Woods) active beginning in the 1930s. The filmmakers were members of the New American Movement (a precursor of DSA), and the late Vicki Starr (aka Stella Nowicki) was a longtime member of Chicago DSA and the Chicago Women's Liberation Union. It’s available free on YouTube, though sound quality is poor. 8ET/7CT/6MT/5PT.