How Austerity Is Killing Europe
The European Union has become a vicious circle of burgeoning debt leading to radical austerity measures, which in turn further weaken economic conditions and result in calls for still more damaging cuts in government spending and higher taxes. Rarely do we get so stark an example of bad—arguably even perverse—economic thinking in action. How could the EU so misread history and treat with contempt the teachings of John Maynard Keynes, who showed that during recessions governments must expand economies through spending and tax cuts, not the opposite? By ignoring this, European policy makers will deepen, not solve, the financial crisis and millions of people will suffer needlessly.
January 6, 2012
Can Obama Act Alone?
As the debt ceiling fiasco continues unresolved and increasingly dangerous, with no agreement among the House, the Senate and the White House yet in sight, an obscure and forgotten constitutional clause has suddenly come under scrutiny. The Fourteenth Amendment, adopted after the Civil War, provides that “The validity of the public debt of the United States, authorized by law … shall not be questioned.” Does that clause mean that it is unconstitutional for Congress to refuse to raise the debt ceiling – the amount the nation is legally permitted to borrow – in our present circumstances, and that the President is therefore constitutionally permitted to borrow money on his own authority?
July 29, 2011