The Contest Over The Real Economic Problem

Robert Reich

“Our biggest problems over the next ten years are not deficits,” the President told House Republicans Wednesday, according to those who attended the meeting. The President needs to deliver the same message to the public, loudly and clearly. The biggest problems we face are unemployment, stagnant wages, slow growth, and widening inequality — not deficits. The major […]

The Minimum Wage, Guns, Healthcare, And The Meaning of a Decent Society


Raising the minimum wage from $7.25 to $9 should be a no-brainer. Republicans say it will cause employers to shed jobs, but that’s baloney. Employers won’t outsource the jobs abroad or substitute machines for them because jobs at this low level of pay are all in the local personal service sector (retail, restaurant, hotel, and […]

The US Jobs Report, And Why The Recovery Has Stalled


We are in the most anemic recovery in modern history, yet our political leaders in Washington aren’t doing squat about it. In fact, apart from the Fed – which continues to hold interest rates down in the quixotic hope that banks will begin lending again to average people – the government is heading in exactly […]

Grand Mal Economics

Brad DeLong

Across the North Atlantic region, central bankers and governments seem, for the most part, helpless in restoring full employment to their economies. Europe has slipped back into recession without ever really recovering from the financial/sovereign-debt crisis that began in 2008. The United States’ economy is currently growing at 1.5% per year (about a full percentage […]

Why David Cameron is wrong on Europe

ed miliband

Tomorrow’s speech by David Cameron will define him as a weak Prime Minister, being driven by his party, not by the national economic interest. In October 2011, he opposed committing to an in/out referendum because of the uncertainty it would create for the country. The only thing that has changed since then is he has […]

European Labour Markets: Six Key Lessons From The Commission Report

Jonathan POrtes

I haven’t always been complimentary about the European Commission – either its economic analysis or its policy advice.  So it’s nice to be able to be wholeheartedly positive about the excellent report “Employment and Social Developments in Europe 2012” (brought to my attention by this article by Ambrose Evans-Pritchard in the Telegraph, also excellent) produced by the Commission’s Directorate-General for […]

Europe is not working!

David Lizoain

Yesterday, Joseph Stiglitz spoke at a conference in Barcelona. He noted that the euro zone is designed in such a way that when young people from Greece, Ireland, etc. emigrate, they are no longer liable for the debts accumulated by previous generations. This emigration shrinks the tax base and makes it harder to service public […]

A Modern Approach for Fair, Inclusive, Pro-active Labour Market Policies – Lessons learned from the Austrian Experience

Throughout the course of history, there were several so call labour market models in western societies: the United States, Sweden, Denmark, the Netherlands, and more recently Germany and, maybe, Austria. In terms of a well functioning labour market, most of them were successful for a certain period in history but failed in others. Look at […]

A Labour Market Perspective of the Austerity versus Growth Debate

Marco Giuli

The French electoral campaign has been widely read across Europe as a fight between the candidate of austerity and the candidate of growth, as much as these interpretational categories have been used to describe the frictions between Hollande and Merkel, exacerbated during the latest European Council summit. But this debate is misplaced, gives rise to […]

Finding a Way out of the Crisis – Growth and Employment in Europe

Frank-Walter Steinmeier

The economic and social consequences of lopsided policies focussed on lowering expenditure are fatal. Europe is threatening to fall apart as a result. Instead of the European crisis easing, it has worsened over the past two years and the credit risks which Germany is shouldering have not shrunk, but have grown significantly. The crisis from which […]