ECONOMIC AUSTERITY:
THE PATH TO PROSPERITY. . . OR NOT?

Martin Wolf

DESCRIPTION: This one-time lecture will examine the ongoing debate among U.S. and European policymakers as to how to best promote increased economic growth. For some, the solution is to boost business confidence through large reductions in both government outlays and business taxes/regulations. For others, the solution to spur growth is large increases in government spending, especially on infrastructure projects, as well as a continuation of income support and job-training programs. This lecture provides a comprehensive examination of these alternative policy approaches. The lecture will begin with an overview of current and prospective economic and financial/fiscal conditions, both at home and abroad. We then turn to the specifics of alternative policy initiatives, focusing on their economic rationale and societal impacts. Finally, we place the debate within an historical context – especially during the period of the Great Depression when the “austerity vs. fiscal stimulus” debate was very much like what is now taking place.

BIOGRAPHICAL INFORMATION: Dr. Martin Wolf received his MBA and Ph.D. degrees from the Graduate School of Business, New York University. Dr. Wolf has more than 30 years experience in economic forecasting and analysis. He worked for 21 years at AT&T, where he was in charge of economic forecasting organization. He also spent 10 years with the National Council on Compensation Insurance, where he served as an expert witness at state-rate filings, and also lectured on business-cycle related issues before professional groups throughout the U.S.