Over the last few weeks, Europe has fought with itself over how to regain control of an economic crisis taking on a life of its own. With the momentum of current economic policy forces driving growth potential down and unemployment statistics up, those favoring austerity as a means of slowing the downward slide are slipping in all polling data tracking their respective economic performance.
Today the world will recognize May Day 2012 with planned marches, demonstrations, protest and acts of civil disobedience to express its disapproval of current method's of dealing with this global phenomena of escalating unemployment.
From New York to Madrid the international populace is gathering to reject policies they feel have depressed economic activity which has lead to severe reduction of employment opportunities. Spain follows a host of nations failing under the crushing weight of economic measures being imposed upon them by leaders who've signed on to the austerity approach. Much to the angst and anger of Europe's citizens, tough cuts to education and healthcare among more to come in all areas of social services and lower paying employment options are stirring the widespread protest.
Last week the debate was whether austerity driving global economy into recession. This week, there is no debate, because the facts are undeniable: "GENEVA (ILO News) –Despite signs that economic growth has resumed in some regions, the global employment situation is alarming and shows no sign of recovery in the near future, says the International Labour Organization (ILO)." In the ILO’s(International Labor Organization's) “World of Work Report 2012: Better Jobs for a Better Economy” says that around 50 million jobs are still missing compared to the situation that existed before the crisis. It also warns that a new and more problematic phase of the global jobs crisis is emerging.
The ILO reports this is primarily related to governments, chiefly in advanced economies, shifting their priority to a combination of fiscal austerity and tough labour market reforms. The report maintains those measures are having devastating consequences on labour markets in general and job creation in particular.
All data now confirms, these measures have for the most part failed to reduce fiscal deficits. According to Raymond Torres, Director of the ILO Institute for International Labor Studies, "the narrow focus of many Eurozone countries on fiscal austerity is deepening the jobs crisis and could even lead to another recession in Europe”. If this is a time for all options to be on the table, we should start hearing words and phrases like debt forgiveness, write downs, stimulus, infrastructure projects, bond losses, radical healthcare reform(US) tax reform, as well as the dreaded QE-3, 4 and 5 if need be.
The only good news to be gleaned from the world's horrid economic position is, the American President can profit from Europe's errors. Barack Obama can point to the global shortage of jobs to offset certain criticism of America's anticipated slowing employment reports on the horizon.
While the US' employment statistics are unacceptably high, by global standards President Obama's policies has at the very least, held the US economy's head above water as others are clearly drowning. Campaigning against his political rival's now "proven ass backward path to economic stabilization", Barack Obama could actually reestablish America's reputation as the "Can Do" and "Go To" nation when the real $hit hits the fan.
Staying the course of populist policies will yield positive results as the world continues to trend left.
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