Daily Archives: December 20, 2012

By William K. Black

In July 2011, President Obama and Speaker Boehner reached an agreement in principle on a deal crafted to inflict $4 trillion in austerity by raising taxes modestly, slashing social spending, and beginning to unravel the safety net.  The deal would have been a disaster for America.  Unemployment was 9.1%.  The deal would have thrown us back into a recession and caused unemployment to surge.  Recessions and increased unemployment cause tax revenues to fall and increase demand for social services (e.g., for unemployment compensation) – they produce large deficits.  Austerity kills jobs and frequently increases deficits.  The Eurozone is the latest demonstration of this fact.  Continue reading →