Responding to a letter by 80 CEOs published in the Wall Street Journal calling for budget cuts to reduce the deficit, 350 economists published a letter calling for job stimulus and growth instead. CEOs Wrong To Promote Dangerous Budget Cuts, 350 Economists Say. These economist warn that cutting government spending during a downturn is the opposite of what should be done, pointing to examples such as the economy of Greece which collapsed immediately after deep austerity cuts which made unemployment worse. Instead we should be focusing on boosting employment.

On Wednesday, 350 economists signed a letter calling for "jobs and growth, not austerity." The letter, written by Robert Borosage and Roger Hickey, co-directors of the Institute for America's Future, and Robert Kuttner, founder of The American Prospect, emphasizes that mitigating long-term unemployment is the key to ensuring higher economic growth, lower unemployment and lower deficits.

"The budget hawks have the sequence backwards.... Budget cuts in a deep slump lead only to a deeper slump," the economists said. "We need jobs first. With recovery, deficit reduction will come of its own accord thanks to increased revenues in an improving economy." ...

The U.S. unemployment rate has been declining slowly, and it's generally recognized that it would be much lower now if it were not for government budget cuts. The unemployment rate, at 7.9 percent, is only 21 percent lower than its recession peak of 10.0 percent three years ago, according to the Bureau of Labor Statistics.

Austerity measures do not have a good track record as of late. As Greece has slashed its budget in exchange for bailout funding, its economy has collapsed, and its deficit continues to grow. In other countries in Europe, austerity measures also have led to high unemployment and higher deficits.

