Rania Antonopoulos - Responding to the Unemployment Crisis in Greece

Rania Antonopoulos, Senior Scholar at the Levy Economics Institute, describes her proposal for an "Employer of Last Resort" program in Greece. Part of the MMx seminar “The Disparate Impact of Unemployment: Macroeconomic Policy as a Tool for Race, Gender, and Age Discrimination” hosted by the Modern Money Network.

percent like to thank grown and grown
for inviting me

and for giving me the opportunity to
speak to you

this time not the bar the shears is that
there are

they no school what I have been doing
for the last fifteen years the cheese

gender equality on neither today and
going to Krogers

on unemployment and I really

pick-up in every 20 years you will see
now

what that the previous speakers kid
smoking a bong

only I really focused or bench time and
our discussion

on they case increase click

respectability become about background
I'm sure that your own

taking I in the newspapers for

few years now I'm tripping com workers
said happened eating

Europe's five countries including Greece

what they have in mind he's we can
release saying

or two girl Ireland and

grease so I'm let me let me begin

arm we okay re just

peace lines that really some I'm there

and did you what happened in Greece and
I wouldn't it would be you some

background on before we begin

repay use Eventbrite how to handle and
government today

increase so at the end 0

5 2009 beginning all 2010

Greece finds itself in a situation where
they

56 and bi-annual difference between

great thanks that they're collecting the
taxes are collected and the amount the

government spends was

exactly

a sixty-percent and the day accumulate
you did was come into the crowd

percentage would be and got who's
invited a scan actually

over it CP that or countries that belong
to the puter zone

that they're using day you know com pick
to sign on in order to become members of

the euro zone

and being in my arms see pp that they
signed when they

become members over the euro zone's says
that

they day cannot exceed sixty percent of
GDP

and their i'm yearning their deficit
cannot be more than 3 percent

okay to be I'll so preschoolers

clearly and buy an external drive from

but I wanna ask the company's and new
carpet

the I rose that they had him as you see

big gap between the red and blue lines
the red line being total expenditures

and add the 29 a gripping you I'm

is there but it is quite small be for
the conference center and the last

quarter

Richies when their subprime mortgage

crisis erupts in the United States and
starts

scathing sound throughout the world
northeast that between 2007 and up 2007

and 2000 a there is a gap between the
two

got of course he's home difficult
process and put a long time

but then 160 2009

think that he had eight they definitely
increase total expenditures do not

change much today

they've done does not change much
because the blue line

that goes beyond what does that mean
that means you have a

economy that is in the section you have
an environment for businesses

writing this because the crises and
therefore there is this

didn't

that the government has big gap between
spending and revenue decreases

it is in these circumstances in 2009

got Greece is not able

cool certainly speaks it it

has a because the the rolling over

obligations that they had good on and
their

for that government that was elected
back pain 2009

arm sorry about that in 2009

are decided that exactly loans the way
to be taken out and getting paid by the

troika

that these days you know bien Commission
the European Central Bank and a and

their

now I am at pretty sure that you all
know

their Latin America way

school plenty of similar financial
trouble

in the eighties and big head to also be
rescued

through these and I could use on all

funds that they would be saving and they
had to sign

memoranda all agreements in order to
receive

these loans and that point 8 p.m.
background

exactly the same idea was applied in

grace but in other countries as well the
thinking is that

if you're borrowing the primary concern
if the borrower

is to ensure that you're going to be
able to pay back

and in order to pay back some
supervisory board

is going to make sure that your micro
economic policies and the way the truth

and the economy he said

that love accept less

meaning you will be collecting more
taxes than work is spending

you know to be able to make payments but
if we think about it for a minute

you can accomplish this through two
different ways

one easy economy grows prior and the
like

then your revenue really be plenty

and you again spend for your local needs
and have something left over

to make payments your debtors the etrade

to do it is to slash spending

government spending you may be receiving
this AM

revenue now you don't spend it and
basically

what you do I you reduce spending on
health education transportation

you'll find here your public

severance literally you did use their
ages by how much

go percent 15 percent and 20 percent
pensions

you stop paying pensions you refuse
pensions by

34 percent and at the same time

p57 you ongoing and that

with the primary sectors with the
surface that will allow you to make

payments but in the meantime

you may have killed of the economy and
its people and this is exactly what is

happening in Greece and this is what I'm
trying here on the 3rd Graf

on the 2nd Graf here where you see

government spending disposable income
and consumption expenditures

the learning or won't be needed if they
don't

essentially com since 2010 and picking

2010 because this is where I'm we sign

that first bailout package so Greece has
now

borrow $250 billion

know that too be able to roll over it's
there

and essentially or what they described
which are there

austerity measures and based on the AVR
that payment center there

God to the degree that you are

cutting down the sink in the government
sector less and less government spending

we're I love you to reach have to say

for the fun of course this is company

nonsense and one of the things that
happen

me is that I have see think they see it
2008

unemployed people in Greece where

room the unemployed in places where

downdraft 370,000 2010 their

on their doing this second here the
crisis in Greece

before the AM at and alone scummy

and we have 640 that there are but

fast-forwarding and give it two and a
half more years

this is where the speaker comes from and
you now have 1.3 million people

online this is a small country 10
million people

the n really meant that you were talking
about earlier

to the appropriation on acro

need 2008 let's say worth roughly six
percent

today this forty percent and we 40
percent

employment vicious repair unemployment

that his cheeks 27

can be going to 28 percent justifiably

this thought that might be the
babysitter com where they have here

is to grass that that comparing the
Greek situation with the Great

Depression the United States

com the craft's comment from it paper

aren't prepared mind by my to call it
that they leave Institute

and the blue line represents

Greece and you can see that bone the
lead hand side

graph that shows added be gross national

product he's declining

and is the plan and get the clanging
four years into their

Great Depression in the United States
you have it there around

nothing grace see going down and when
you look at the unemployment

situation saving the

Blackline here so the United States the
resistor

around in terms of unemployment lot
going

our best 25 percent and coming down

increase as I have shown you already it
has being

or Olympics crosscut 35 percent it now
closer to 28 percent

and rising

so whether they should not increase it
when we look at

unemployment the basic issue is that we
continue

to hair we continued to head

a our said all 40s

the aesthetic that there was describing
before

this reading of the government decline

ways no smaller and I will sorry

harm the used rangy trying to become
more competitive in export more

that are simply not working there
shading the economy

but they are not the getting us outdoor
the sex

now in Greece is in a bit could hear
situation

the United States is in a very different
and they did

exist under very different circumstances
because you have an autonomous KNC

and for those who have you that of have
been participating

in the day is sending out with him on
Monday beauty

you would be immediately recognize what
that means

Greece does not have it carries

ovitz home cannot be shipped goods your

bar all they you know and that means for
example you can I think I'm here only

this face

you cannot get up eat mine you cannot

issue bonds yourself you have to care

permission and if the position is not be
then you cannot

so saying then my

my stick 50 as you 24 also take subway
BRB

cool head expansionary fiscal policy

so during a session on instead of the
government being

there I 3 able to spend more

in order to make up for this thinking
that they took place in the private

sector

you cannot do that either so you don't
have fiscal plans you don't want to say

but if you don't have it saved it for
you

so what do you have 100 any policy
instruments there were a lot of

up folks have talked about today
incomplete this phone

p I picked our all they European Union
and how these needs to change I don't

think I'll

warm or cool of the European Union and

if that is not the greatest we're gonna
go anywhere you know

there is no employment target

for any of the country's you know the
word

this excess or crazy here all the
country

and what countries signed on 30 games to
where they hit people

your Park CW and he was spending

under control he does not ask

on or whether the economy is growing

increasing creating decent jobs so

the orientation on that even didn't
fully

you know this magnificent a benefit for
those that like that this is it good

landed

where it is likely not there or not to
have quantitative easing up by the

thinking easing in terms of employment

back took place of birth but at least
you have to send the data center banks a

we will continue this policy and being
unemployment rates come down 5 percent

in Europe there is no policy

essentially around and going but what do
we have in Europe

what we have in Europe is and undegraded

active labor market said appoints are

what they mean by anti prom

Bob spoke about handed area

if you beat me in we APR

got when do you have any learn there is
something wrong

with that person that these and run many

the president's applying made by the 5k
contact with everything

education and that he thinks so

cuz the fight poverty educate them if
you educate them

they have good skills to bed getting the
market today

the right way he said they get employed
Bernard professor that it or read that

ain't necessarily so and

I love love you made the comparisons
between

white folks and got the folks when it
comes to different levels over education

because

I remember teaching gender all

you get exactly the same picture up
until the late 90's then something's

teams huge huge gaps that that
inexplicable

back pain prism so if they suck yoba boy

these problems I think what you do you
have to pay

you have to think they did you and you
don't have to pick up my pic you don't

have to fix

the labor markets you don't have to
think about

whether it be man he said patient to cry
everybody'd your feet say about

and who are wrongly labour s

was most vulnerable in the opinion

all the europeans the most vulnerable
the you

they don't care any

experience maybe they have the same
level of education

but if it is any no I meant we have to
help them

become and purely a bomb and

be there educate them a little bit more
or

we had through I love them

given first tends to the company so that
government

for you see in Sweden you feel and

in Germany you never see them countries
in Europe

has been focusing on two things when
they speak

about hand I'm

one these increasing and create be

the other is increasing the ability to
be an entertainer

anything wrong with that no

he doesn't line though some people
absolutely this is this story for

excitement to the bookmaker

but not for everybody and there are
other issues that pic to do

wreath demand for labour so

in a situation like the one we are
facing

now movies and what they had here

is com be any live in great see if you
can look

I the first column this is 2008 and the
next column

shows you the and Gromit

then second quarter of 2013

work you will observe actually if you
work to

look at all of these on rates

he's got every city country except for
German

Casey their employment increase

including of course you have that fire

countries that time that lady cokie

com Highland Greece Spain and so on

but what is important in Arby's

is that that countries such as Bulgaria
on

let me I'm that in Paris all their
finances

any there for their ability to pay that
there had a didn't find that ticket

services

beef is not protected them prominent
black and white because

day reason you got any crime and wars

that your head markets eugenia shaping
and demand globally

global growth rate suppose time why
would have a problem with the men

and you get and unemployment ok 27
percent

increase because a black up demand for
labour

there anything that is being offered is
and maybe

so what do they do they didn't give
stipends

all the equivalent in the grass will be
two hundred dollars

and I'm for someone to go through a

training school per month ago and there
are

start these after studies that pixel
that

the and period be getting better at home
you get employed by the progress

once the program ends nothing doing
forward about

unemployment I'm not sure what this is
okay

one word about on youth unemployment

and then I we pay the next three minutes

food company what we're doing grace I am
be careful

and I it I'm addressing both my
colleagues fearing their room and

everybody else youth unemployment is
very high

are increase as was mentioned actually
today 6 percent

so here you have to use any blanket get
credit for

you know I love this country is a red
line you can clearly see

and climb in rates are much higher
better

I think I'm for the race for the
population aged 55 to 64

but see what happens if a look at the
National ratio

ok this is an employment share

by age saying Greece a hair today at one
point one point

3 1.3 mi n people and employed

and what I'm asking here it is how many
among them I yearn

what is this shared anything like
increase is 170 thousand

proper one going 3 medium people

but rather than 73,000 that I down do
they not face a problem

absolutely yes but here is the hypocrisy
in the last year we had

five meetings in europe for me there's

to see how they would respond to an end
run into you know they know they talked

about most use any run

and they came up with bit different
budgets

to support projects that but I was
talking about but we had received

resending plan for 100 and 70,000

and they believe 1,000,000 people
without

any response essentially so there is
another kind of record

there with you then line and that they
think we have to be

mine no okay so now

I have two more very fast and can you

I hope you will ask me some questions so
I we

whet your appetite about.com this

that about what I want to talk you in
the next day

saying that this over there estimates
that they had I

okay out that you're going to see this
famous

for one person for many

people that came have been Business
College love them was called means

payments he spoke about financial
fragility and that's where the means the

moment

comes from that you have on seen and
heard on

but he also spoke about the employer of
last resort

policy which is this that is a sham
policy

got we heard about before getting my
text advertiser

it is called it doesn't guarantee an
Employment Guarantee

and

and I and they thankfully again to my
colleague

on professor baby it because he
explained very much like the days

what I want to do in the next one minute

I guess the pet hair is to

tell you that in 2010 the libyans the
cute spoke

with look at Teddy who was the Minister

of you remembered about all who was a
minister old labor at the time

and they had not signed any agreements
anymore and that but we were in a

recession

so we spoke to look good together with
the trade unions because you need these

kinds of agreements

an agreement was reached in 2010 before
the signing of the memorandum that an

Employment Guarantee programme was name

and she said we don't have a lot of
money but what we have left over for the

year

we we start the program with 50,000
55,000

and they said and in terms of the design

and how do you do that property all

some of us including myself back at work
in South Africa and Mexico

in India the problems that actually

home way talked about earlier we
mentioned at least

earlier and we headed to the XPS anyway
we started this

then what happens is austerity measures
and then bailouts coming

they devastate the economy they didn't
state of course labor market convey

1b you with a fifty thousand here so

we have said of course

that one the estate because the stock

secondly en masse see

kind all eighty investment in the
construction plan

as the setting increase otherwise we're
not getting out of this situation

your hair suicides

you have homelessness to the phenomena
that we never imagined we're going to

see

are no water no sanitation no heat

Nikkei I am and

they are now looking in 20 the
opportunity that may exist that we're

going to change the government

I'm sending that this Government will
poll because they keep insisting on the

same policies and that

a new more and like 10 a progressive
government with

arm it they call them work we have done

here therefore as we are conversation we

various om home

constituencies in place is the week have
created

a program for 250,000

or 515

thousand jobs we care course the big

way sixty percent all the cost goes for
wages

forty percent goes for any station and
materials because their projects that

are waiting to be done

along the lines that he heard already
but

including in the case of Greece and
vital mentor

local environmental at work that these

home waiting and work you have improved
review

is then macroeconomic implications

upset program so let me just look at one
sec

you could pay it wait till 586

you toast per month and you cryin

record meet new people 550,000 people
because the multiplier effects

you we generate more jobs in the economy
so they

got their number of jobs that the one
candidate got pleeease

700,000

good thing he course and not unit 67

billion mind you $7 billion-a-year

is work with a right now for he Curtis

payments army do that day

that belongs to 35 this other countries

essentially Sabrina moratorium or just
three

yes we don't make payments would just
two years

and we during the summer but money to a

job-creation program we could solve so

many many problems in Greece so

who things out own or because he's

7.1 BDN corners you know

art day practically everything that we
did a

you end up with the course ok CBN

bandwidth CDN year you can support full
time jobs

for 700,000 many you've got handgun

impact these therefore becomes

and ASAP they any good

you i'm talking about. is and Employment
Guarantee programme

serving precisely their goal

all this had been a great importance in
expansionary fiscal policy

for me instead of investing container
and waking

aren't here the jobs get created you go
the other way round

you target you're spending your public
spending

directly on job creation the last say
that I'm not gonna go through

because I just did everybody stations by
now I

describes for the case increase where
would the money come from which is

always a question

where will the money come from we can
find the money actually

week don't having to have not gone get
the political will

and back to school for peace for the
United States

and they cool beans that eventually we
will

be able to be open and international

I'm that Khamis to changing in fact
constitutional rights

the way they did in India because that's
what they didn't get

they amended the constitution and the
right to work movement that took 10

years

to take root by now guarantees

employment not sweet I'm not whatever
but for front-month

every year in router areas braid your
hair seasonal and fun

and now your hand more art than

one-third all the population
participating year after year

if you get can do it please do not come
to the united states cannot

thank you you