NO ADVERTISING, GOVERNMENT OR CORPORATE FUNDING
DONATE TODAY


  January 2, 2013

Economic Outlook for 2013


Bob Pollin: With austerity policies in Europe and the USA and slow down in China and India, 2013 needs innovative policies or more recession is likely
Members don't see ads. If you are a member, and you're seeing this appeal, click here
   



audio

Share to Facebook Share to Twitter



I support the Real News because without The Real News we would have no real news at all. - WWH
Log in and tell us why you support TRNN


biography

Robert Pollin is Distinguished Professor of Economics and Co-Director of the Political Economy Research Institute (PERI) at the University of Massachusetts-Amherst. He is also the founder and President of PEAR (Pollin Energy and Retrofits), an Amherst, MA-based green energy company operating throughout the United States. His books include The Living Wage: Building a Fair Economy (co-authored 1998); Contours of Descent: U.S. Economic Fractures and the Landscape of Global Austerity (2003); An Employment-Targeted Economic Program for South Africa (co-authored 2007); A Measure of Fairness: The Economics of Living Wages and Minimum Wages in the United States (co-authored 2008), Back to Full Employment (2012), Green Growth (2014), Global Green Growth (2015) and Greening the Global Economy (2015).


transcript

Economic Outlook for 2013PAUL JAY, SENIOR EDITOR, TRNN: Welcome to The Real News Network. I'm Paul Jay in Baltimore. And welcome to this week's edition of The PERI Report. Now joining us from Amherst, Massachusetts, is Bob Pollin. He's codirector, cofounder of the PERI institute. Hi, Bob.

ROBERT POLLIN, CODIRECTOR, POLITICAL ECONOMY RESEARCH INSTITUTE: Hi, Paul. Thank you for having me on.

JAY: So, looking forward to 2013, the American economy, global economy, more of the same? Dramatically better? Or what's the potential for dramatically worse?

POLLIN: Well, let's get realistic. Starting with Europe, the crisis in Europe is not getting any better. There's no evidence a solution, a serious solution is being implemented, so that therefore it's fair to say that conditions there are more likely to get worse. That is, in Greece there is no resolution to the crisis, the severe crisis that has been experienced there now for two years, and there's no serious relief in terms of facing the cuts, the severe cuts, the austerity agenda that's been implemented there, similar to Spain, similar in Italy, similar in Ireland. We do not have a solution there. Technically I can sketch out a solution very easily. Politically, there is no solution, because the dominant politicians, certainly in Germany, remain fundamentally committed to the idea of austerity as a solution, and austerity is not a solution.

So, now, without Europe experiencing some kind of turnaround, some kind of growth, it's impossible to see how the rest of the world is going to be buoyant, even if everything else were to continue to improve. But everything else is not getting stronger. As we see, the Federal Reserve itself is forecasting that unemployment in the U.S. is going to stay between 7.3 and 7.7 percent, so essentially no improvement in the United States.

On top of that, in the United States we face the problem of the Fed having ineffective policies to date, even though, at one level, the zero interest rate policy is extremely aggressive. It looks extremely aggressive. It is extremely aggressive for helping the banks. It is not extremely aggressive for getting money into the economy. The prospects for a significant fiscal stimulus, which is what we need for the coming year to get the unemployment rate down: most unlikely. Quite the contrary. Again, we're talking about how much austerity we're going to impose.

Then let's look to Asia. The economies China and India have slowed down. They're still obviously doing a lot better than we are here in terms of growth, but there's a big difference between China growing at 5 percent versus China growing at 9 percent. So we do not see a clear growth engine coming out of any region of the world that is likely to move the engine. And that is going to continue as long as Europe and the United States are completely enveloped by this notion that cutting fiscal deficits, austerity, is the order of the day.

We have to overcome that idea, and we have to undertake innovative, aggressive policies focused on job creation. And investing long-term in infrastructure and the green economy is a way to build out jobs, raise productivity, and reverse climate change. That's not happening, though. We need to get onto those points.

JAY: Thanks for joining us, Bob.

POLLIN: Okay. Thank you.

JAY: And thank you for joining us on The Real News Network.

End

DISCLAIMER: Please note that transcripts for The Real News Network are typed from a recording of the program. TRNN cannot guarantee their complete accuracy.



Comments

Our automatic spam filter blocks comments with multiple links and multiple users using the same IP address. Please make thoughtful comments with minimal links using only one user name. If you think your comment has been mistakenly removed please email us at contact@therealnews.com

latest stories

"Wealthcare" Defeated: Health Care For All Back on the Agenda
Defending the Climate in the Age of Trump
Baltimore Mayor's Veto of $15 Wage Protects Policy of Subsidizing Wealthy, Councilperson Says
The Truth Behind the War on Immigrants
Were Haitian Police Behind Assassination Attempt on Aristide?
New Provisions Eliminate Healthcare From GOP 'Wealthcare' Bill
Why Further Revelations on Trump's Russian Connections Might Fail to Bring Him Down
18 Million U.S. Citizens Exposed to Lead-Contaminated Water Systems
Russia vs. USA: Who is the Threat, Who is the Aggressor? (2/2)
Should Sanders Continue the Fight Outside the Democratic Party?
Fed Inflation Target Keeping Wages Low, People Out of Jobs
Is Trump Dangerous for Russia?
Was the Georgian Conflict Started to Elect John McCain President in 2008? Pt.1
Will the NDP Adopt Pro-BDS Platform?
Massive Cuts to EPA Threaten Communities Already Suffering From Pollution, Climate Change
Whistle Blower Teacher Says Charter Schools Draining Students, Resources from Public Education
Trump's Budget Targets Climate Change Spending Across All Federal Agencies
US Has Interfered in More Elections Than Any Other Nation
Maryland Democrats Push Back Against Gov. Hogan's Support for ACA Repeal
Russia vs. USA: Who is the Threat, Who is the Aggressor? (1/2)
Democrats Fail to Dig into Trump's Shady Financial Ties During Hearing
Why is the Capitalist West Fighting with Capitalist Russia?
Baltimore City Council Passes Historic $15 Minimum Wage
UN Report Finds Apartheid Exists Within Israel
Neil Gorsuch's Woeful Record on Civil Rights
Federal Judge Orders Civil Rights Lawsuit Against Pocomoke, State of MD to Move Forward
Hundreds Rally to Demand A Fix to Baltimore's School Budget Deficit
Trump Adds Another Goldman Sachs Alum to His Administration
Empire Files: Abby Martin Exposes Steve Bannon
Wealthiest U.S. Households Save Big Under GOP Health Care Bill

TheRealNewsNetwork.com, RealNewsNetwork.com, The Real News Network, Real News Network, The Real News, Real News, Real News For Real People, IWT are trademarks and service marks of Independent World Television inc. "The Real News" is the flagship show of IWT and The Real News Network.

All original content on this site is copyright of The Real News Network. Click here for more

Problems with this site? Please let us know

Managed Wordpress Hosting