For the last three to four years, the U.S. government has gone an historic bout of austerity, by raising taxes and cutting spending. This has contributed to a weak economic recovery, with workers still facing an official unemployment rate of 6.7%, which would be even higher if millions of unemployed had not given up looking for work. At the same time corporate profits have boomed to record highs.

_Economic expansion continues...for now _

San José, CA – On Jan. 30, the Commerce Department reported that Gross Domestic Product, or GDP, fell by a very small amount (0.1% at an annual rate) in the last three months of 2012. The drop in GDP was largely because of a big drop in federal government purchases of goods and services, in addition to a drop in inventories (meaning that stores sold goods that were sitting on their shelves instead of having more produced) and a drop in exports.

Fight Back News Service is circulating the following statements from communist and workers parties in solidarity with the powerful struggle against austerity in Greece. Freedom Road Socialist Organization (FRSO) is among the signers. Solidarity with the working people of Greece, with PAME, and with KKE

Spending cuts will hurt weak economy

This is the fifth in a series. See parts one, two, three, and four.