Congressman Dennis Kucinich (D-OH) today released the following statement after a new study from the Youngstown State University Center for Working Class Studies found that the "de-facto" unemployment rate is 26.37%. That number includes the unemployed, underemployed, those unable to work due to excess disability, and those on government assistance.
"Under the wrong assumption that fiscal austerity is economically stimulative, Congress' response to the recession has been to cut desperately needed programs that help individuals and families adversely affected by the recession.
"When other governments have been hit hard economically, the International Monetary Fund (IMF) and the World Bank have forced them to take a similar approach, known as structural adjustment. In exchange for low-interest loans, the IMF has required countries to cut spending and privatize government services. For many countries, like Argentina in 2001, economic tragedy ensued.
"The fastest, most effective way to stimulate the economy is not to cut back on projects that create jobs, but to dramatically accelerate them. We need an infrastructure program on a grand scale that will address our multi-trillion dollar infrastructure needs and will rapidly put millions of Americans back to work on projects that keep the economy strong.
"We cannot look the other way as so-called fiscal austerity measures funnel wealth away from the poor and middle class toward the rich. The massive cuts which are primed by the debt ceiling deal would decimate the fragile recovery, and it would be devastating to our most vulnerable communities.
"Eliminating job-creating programs and cutting back programs like Social Security, Medicare and Medicaid, can't help the economy," said Kucinich. "Self-imposed austerity will only hurt our economic recovery and let an untold number of Americans slip into poverty."