Greek Jobless Rate Jumps as Austerity Takes Hold

[villager]

Source: NY Times

Greek Jobless Rate Jumps as Austerity Takes Hold
By DAVID JOLLY

Greece’s jobless rate rose to a record 12.2 percent in August as the pain of austerity measures made itself felt, official data showed Thursday, while efforts to reduce the deficit are showing signs of slowing.

The figures underlined the difficulty of restoring the public finances at a time of economic decline. The government was to report third-quarter gross domestic product Friday, and economists surveyed by Reuters predicted a contraction of as much as 5 percent from a year earlier.

Spain, where the Socialist government of Prime Minister José Luis Rodríguez Zapatero has undertaken a major overhaul of government spending, showed similar strains Thursday. The National Statistics Institute said that G.D.P. grew just 0.2 percent in the July-September period from a year earlier.

That marked the first year-over-year growth since the third quarter of 2008. But it fell far short of the level needed to pick up the slack in the labor market, where the jobless rate stands at 19.8 percent, the worst among the European Union’s 27 member states. From the second quarter, growth was flat, the institute said.

<snip>

Read more: http://www.nytimes.com/2010/11/12/business/global/12euecon.html?src=busln

[Salviati]

1. No shit... who could have predicted such a thing?

I mean besides anyone who had ever taken any sort of macroeconomics class ever?

[ixion]

2. Note the path Greece is walking

because we'll be walking that same path soon.

[madrchsod]

7. we all ready are...no one wants to admit it

[ixion]

11. fair enough, and I would agree

on both counts.

[prolesunited]

3. Just wait to see what happens here

when millions run out of unemployment benefits. There are NOT millions of jobs waiting to be filled, even at minimum wage.

[Roy Rolling]

4. the money's spent

Lets see, as it applies to the US: spend all the money on unnecessary wars using private war mercenaries and pricey contractors then make someone else cut back. When the streets of the US are filled with angry protesters like the sixties they will take notice...

[OHdem10]

5. Belt Tightening (Cutt, Slash Cut) alwasys loses jobs.especially

if done in a recession. Herbert Hoover did just that and
threw us into the great Depression. Austerity should only
be done as you are absolutely positve your economy has
recovered and there is no danger of falling futher.

It is unfortunate we have permitted the GOP to control
the message, write all the books on Conservatism, hold
all the Docudramas and specials on Conservatism while
Destroying Liberalism. We have needed and still need
Liberal Voices on Economics to be heard by rank and
file Americans.

There is a serious economic argument to be made against
Austeriy being improsed at the wrong time. All we
will hear is Conservative Argument.

Liberals start chirping. The Canaries are stirring.

[Kolesar]

6. ...and don't eliminate teachers' jobs during a recession

That means less spending, more homes on the market, deflationary pressures, and more recession.

[ck4829]

8. Isn't "austerity" what they used on the Titanic?

Where the lifeboats got like half capacity from the upper class deck and then launched all while they locked the people from the lower classes below deck?

K&R.

[glitch]

9. Excellent analogy. nt

[fasttense]

10. Every where "austerity" measures have been used, unemployment rates go sky high

so do poverty rates, and people starving (oops I mean food insecurity), the middle class shrinks, GDP contracts, and property crime increases.

Of course "austerity" in these scenarios means austerity for the middle class and poor never bigger taxes or austerity for the rich and powerful.

That's why "austerity" like "free" in free markets should always be in quotes. It's not true austerity unless the entire population of a country participates.

[LongTomH]

12. +1000

Greece, Spain, Ireland! Everywhere "austerity" has been imposed, the economic crisis deepens. At this rate, we're going to be in a world-wide depression.

You think you're seeing 'unrest' now, Cousin? Just wait!

[DallasNE]

13. Who Could Have Guessed

That going from workers paying taxes to the unemployed drawing unemployment benefits would wreck the budget. Duh!

And we have the conservative government of Germany to thank for EU imposing these austerity measures. The big dog barked.

[HereSince1628]

14. Is there ANY chance Congress can learn from the Greek mistake?.

[StarsInHerHair]

15. when people can't find legal jobs they still have to eat

it's no surprise that some turn to illegal jobs, it's as simple as cause-&-effect. "Austerity" is madness, & this is just more proof.