Do Budget Cuts Lead to Growth?
2012 -
Age of Austerity


On April 17, 2012, SCEPA organized an event to discuss, "What the U.S. Should Learn From Austerity's Fallout in Europe and Latin America?"

Policymakers around the world have embraced austerity measures as the solution to the continuing economic malaise. Yet, the evidence of recent experience does not support this prescription. To encourage a broader discussion for the United States' future budgetary decisions, New School economists offer a different vision to create stability and growth.

Specifically, they review the theoretical foundations of austerity economics and the experiences of austerity and intervention in the European Union and South America. The event includes a discussion of the practicality of the pursuit of austerity policies in the United States and an analysis of the assumptions made by supporting politicians and policymakers.


Panelists and Presentations:

"Spend Now, Cut Later: Fiscal Policy and Economic Growth"
Richard McGahey, Professor of Professional Practice, Public Policy and Economics, Urban Policy Program, New School for Public Engagement

"The North Can Learn from the South"
Michael Cohen, Professor of International Affairs and Director, Graduate Program in International Affairs, New School for Public Engagement

"Labor Market, Labor Institutions and Social Protection in Latin America"
Roxana Maurizio, Researcher-Professor, Universidad Nacional de General Sarmiento and CONICET, Argentina, and visiting CONICET Fellow at GPIA.

"Madmen in Authority and the Scientific Foundations of Austerity Policies"
William Milberg, Professor of Economics and Chair, Department of Economics, New School for Social Research

Moderator: Teresa Ghilarducci, Professor of Economics, New School for Social Research

This was the second in a series of SCEPA discussion's regarding the political power of austerity in the United States' response to the recession. The first event, "Do Budget Cuts Lead to Growth?," was held on December 13, 2011.