Austerity

The people who say that $30 billion or so in deficit reduction is insufficient are obviously right. It's pathetic. Where they go wrong is in presenting the alternative as something called "austerity. " For all the gloomy talk of tightening the belts and shutting down the party and cutting up the credit card, the degree of adjustment we need to make is trivial. What we regard as untenable austerity is a level of self-indulgence that any other society on earth, including our own until recently, would regard as sybaritic.

PARIS - Thousands of demonstrators marched peacefully Sunday in Paris to denounce austerity measures in Europe that have sparked violent protests in other EU countries struggling to avert fiscal crises. The march, organized largely by the Left Front party and the Communists, comes before the French parliament's debate this week on a European fiscal treaty. Organizers put turnout at more than 80,000; Paris police declined to provide an estimate. The protest exposed political pressures faced by President Francois Hollande - whose popularity has been sinking in recent polls - and notably from some ostensible allies of the left.

FOR A NUMBER of years, I have been having regular discussions about the world's economic situation with a very close friend. To keep him in proper perspective, I should note that while he is not in the top 1 percent of America's wealthiest, he is certainly in the top 20 percent and possibly 10 percent. He is now retired. Most of our disagreements concern the best way to get out of our economic doldrums.   He is firmly convinced that the only way to restore substantial growth is to have an austerity program with a key provision of sharp cuts in government spending at all levels of government.

ATHENS, Greece - The smoldering debate over European austerity flared hotter Tuesday as the left-wing politician trying to form a new Greek government declared that his country was no longer bound by its pledges to impose crippling cutbacks in return for rescue loans. The comments by Alexis Tsipras flew in the face of European Union leaders' insistence on fiscal discipline and sent Greek stockst tumbling just two days after Greek voters rejected mainstream pro-austerity politicians.

ROME - Against the backdrop of anti-austerity protesters clashing with riot police, Italy's new prime minister appealed to Italians on Thursday to accept sacrifices to save their country from bankruptcy, but pledged economic growth and greater social cohesion in return. Mario Monti is under enormous pressure to boost growth and bring down Italy's high debt, not only to save Italy from succumbing to the debt crisis but to prevent a catastrophic disintegration of the common euro currency.

Consider it a mea culpa submerged in a deep pool of calculus and regression analysis: The International Monetary Fund's top economist has acknowledged that the fund blew forecasts for Greece and other European economies because it did not fully understand how government austerity efforts would undermine economic growth. A technical paper published Thursday looks again at fiscal multipliers, the impact a rise or fall in government spending or tax collection has on economic output.

MADRID - Spain's government was hit by the country's financial crisis on two fronts Tuesday as protesters, enraged with austerity cutbacks and tax hikes, clashed with police near Parliament while the nation's borrowing costs increased in an auction of its debt. More than 1,000 riot police blocked off access to the Parliament building in the heart of Madrid, forcing most protesters to crowd nearby avenues and shutting down traffic at the height of the evening rush hour. Police used batons to push back some protesters at the front of the march attended by an estimated 6,000 people as tempers flared, and some demonstrators broke down barricades and threw rocks and bottles toward authorities.

ATHENS, Greece - Greece's parliament narrowly passed a crucial austerity bill early Thursday, in a vote that left the coalition government reeling from dissent as it struggles to secure vital bailout funds. The bill, which will further slash pensions and salaries, passed 153-128 in the 300-member parliament. It came hours after rioters rampaged outside the parliament during an 80,000-strong anti-austerity demonstration, clashing with riot police who responded with tear gas, stun grenades and water cannon.

LISBON, Portugal - Many thousands of demonstrators held marches in more than 20 cities in Portugal on Saturday to protest against government-imposed austerity measures aimed at lifting the ailing country out of recession. Tens of thousands of people filled a Lisbon boulevard leading to the Finance Ministry carrying placards saying "Screw the troika, we want our lives back. " The troika is a reference to the European Commission, the International Monetary Fund and the European Central Bank, the lenders behind the country's financial bailout.

SOLUTIONS to big problems don't fit on a bumper sticker. Working people need comprehensive and proven policies that will build shared prosperity for everyone in America who works hard and plays by the rules. It can't be a nip here or a tuck there. We need policies with the scale and boldness to turn around our economy, so it isn't run by and for the richest Americans any more. Good people can disagree, but America has not had honest and meaningful debate for a long time. Here are some ideas to consider.

ISTANBUL, Turkey - Workers around the world united in anger during May Day rallies Wednesday - from fury in Europe over years of austerity measures that have cut wages, reduced benefits and eliminated many jobs altogether, to rage in Asia over relentlessly low pay, the rising cost of living and hideous working conditions that have left hundreds dead in recent months alone. In protests, parades, strikes and other demonstrations held in cities across the planet, activists lashed out at political and business leaders they allege have ignored workers' voices or enriched themselves at the expense of laborers during what has been a difficult few years for the global economy.

The policy mystery of our time is why politicians across much of the democratic world are so obsessed with deficits when their primary mission ought to be bringing down high and debilitating rates of unemployment. And since last week saw a cross-party celebration of the opening of George W. Bush's presidential library, I'd add a second mystery: Why is it that conservative Republicans who freely cut taxes while backing two wars in the Bush years started preaching fire on deficits only after a Democrat entered the White House?

BRUSSELS - Thousands of workers protested in Brussels on Thursday to demand that European Union leaders gathering for a summit bring an end to austerity measures and instead focus on boosting growth and reducing unemployment. The demonstration vented frustration over years of austerity imposed by EU leaders that unions and many economists say is worsening the recession and driving ever more people into unemployment and poverty. Even the EU leaders acknowledge that swift action is needed.

WASHINGTON - As President Obama and lawmakers spar over federal deficits, they're confronted by a classic contradiction: Most Americans want government austerity, a survey shows, but they also want increased spending on a host of popular programs: education, crime fighting, health care, Social Security, the environment and more. Less for defense, space, and foreign aid. The newly released General Social Survey asked people whether they believe spending in specific categories is "too much," "too little" or "about right.

Swarthmore College economist Mark Kuperberg calls it the "austerity pandemic. " It seems to spread from person to person and even continent to continent, like some bizarre zombie malady passed along by politicians and pundits via cable or satellite TV. The U.S. strain has one key symptom: a misguided obsession with a real but long-term problem - the nation's debt - that threatens to worsen an immediate crisis already harming millions of Americans each...

LISBON, Portugal - Many thousands of demonstrators held marches in more than 20 cities in Portugal on Saturday to protest against government-imposed austerity measures aimed at lifting the ailing country out of recession. Tens of thousands of people filled a Lisbon boulevard leading to the Finance Ministry carrying placards saying "Screw the troika, we want our lives back. " The troika is a reference to the European Commission, the International Monetary Fund and the European Central Bank, the lenders behind the country's financial bailout.

Consider it a mea culpa submerged in a deep pool of calculus and regression analysis: The International Monetary Fund's top economist has acknowledged that the fund blew forecasts for Greece and other European economies because it did not fully understand how government austerity efforts would undermine economic growth. A technical paper published Thursday looks again at fiscal multipliers, the impact a rise or fall in government spending or tax collection has on economic output.

LONDON - Lavish fireworks displays ushered in 2013 across the Asia-Pacific region on Tuesday, and Europe was holding scaled-back festivities and street parties in the hope of beginning a year that will be kinder to its battered economies. Asian cities kicked off New Year's celebrations in style and an atmosphere of renewed optimism. Huge fireworks lit up skylines in Sydney, Hong Kong, and Shanghai, and the once-isolated country of Myanmar joined the countdown party for the first time in decades.

ATHENS, Greece - Greece's parliament narrowly passed a crucial austerity bill early Thursday, in a vote that left the coalition government reeling from dissent as it struggles to secure vital bailout funds. The bill, which will further slash pensions and salaries, passed 153-128 in the 300-member parliament. It came hours after rioters rampaged outside the parliament during an 80,000-strong anti-austerity demonstration, clashing with riot police who responded with tear gas, stun grenades and water cannon.

The United States offered a preelection commitment to "carefully calibrate" its budget retrenchment amid global warnings that a rush of austerity would harm the weak world economy. After two days of talks in Mexico City, the Group of 20 finance chiefs said that the United States had pledged to avoid a "sharp fiscal contraction" in 2013. That's when $607 billion of automatic tax increases and spending cuts are set to take effect unless lawmakers act. "Time is of the essence and significant policy uncertainty in Washington must be addressed," International Monetary Fund managing director Christine Lagarde told reporters.