When revenues and expenses don\u2019t add up in times of crisis, governments often turn to budget cuts and other austerity measures to balance their accounts. But economists widely agree that the most valuable lesson from the Great Recession is that austerity made the recession worse and slowed down recovery. Mike Konczal joins the show this week to explain why, in a recession, stimulus is particularly powerful and austerity is particularly harmful.\u00a0<\/p>
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Mike Konczal is the Director of Progressive Thought at the Roosevelt Institute, where he works on financial reform, unemployment, inequality, and a progressive vision of the economy. He is a columnist at Vox<\/em>, a contributor to The Nation<\/em>, and a contributing editor at Dissent<\/em>.\u00a0<\/p> Twitter: @rortybomb<\/a> @rooseveltinst<\/a><\/p> Further reading:\u00a0<\/p> A forward-thinking policy response to the coronavirus recession: https:\/\/rooseveltinstitute.org\/forward-thinking-policy-response-coronavirus-recession\/<\/a><\/p> The stimulus plan that we need now: https:\/\/www.thenation.com\/article\/economy\/coronavirus-stimulus\/<\/a><\/p> With a uniquely fragile economy, stimulus is not enough: https:\/\/bostonreview.net\/class-inequality-politics\/mike-konczal-felicia-wong-uniquely-fragile-economy-stimulus-not-enough<\/a><\/p> Portugal dared to cast aside austerity. It\u2019s having a major revival: https:\/\/www.nytimes.com\/2018\/07\/22\/business\/portugal-economy-austerity.html<\/a><\/p> Worst recovery in postwar era largely explained by cuts in government spending: https:\/\/www.epi.org\/blog\/worst-recovery-in-post-war-era-largely-explained-by-cuts-in-government-spending\/<\/a><\/p> What have we learned about austerity since the Great Recession? https:\/\/www.americanprogress.org\/issues\/economy\/reports\/2014\/05\/30\/90621\/what-have-we-learned-about-austerity-since-the-great-recession\/<\/a><\/p> The United States is not ready for a recession, but it can be: https:\/\/www.americanprogress.org\/issues\/economy\/reports\/2019\/09\/27\/475075\/united-states-not-ready-recession-can\/<\/a><\/p> Austerity is hammering state economies: https:\/\/www.americanprogress.org\/issues\/economy\/reports\/2012\/06\/21\/11672\/austerity-is-hammering-state-economies\/<\/a><\/p> Website: http:\/\/pitchforkeconomics.com\/<\/a><\/p> Twitter: @PitchforkEcon<\/a><\/p> Instagram: @pitchforkeconomics<\/a><\/p> Nick\u2019s twitter: @NickHanauer<\/a><\/p>\n \n
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