Obama told the former Greek finance minister that 'austerity sucks'


"Austerity sucks," quoth Obama.
The president blurted this gem while speaking to the former Greek finance minister, Yanis Varoufakis, who didn't have a whole lot of experience under his belt before taking office in the midst of the worst debt crisis the EU has ever seen. Having previously worked only as an academic, a blogger, a race car driver, and as the white, Greek head of his university's Black Students' Alliance, The New Yorker reports that Varoufakis received a couple of sorely needed words of encouragement from Obama during a Greek Independence Day celebration at the White House.
Obama, Varoufakis said, had told him that he didn't envy him. (In fact, many politicians surely do envy circumstances where there's so little to lose, professionally, by acting on long-held beliefs in exactly the way demanded of them by a clear-voiced electorate.) Varoufakis told Obama that things were tough: "You inherited a mess when you came to office, but at least you had your central bank behind you. We inherited a mess and we have a central bank" — the European Central Bank — "trying to choke us."According to Varoufakis, Obama replied, "Don't underestimate how tough it was for me," adding that bailing out Wall Street was "contrary to my politics" and "political poison." He urged Varoufakis to "swallow bitter stuff." (The White House declined to comment about the conversation.) [The New Yorker]
But Obama didn't stop there:
The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Obama showed more solidarity than Varoufakis was expecting. "I know — austerity sucks," Obama said. ("He used those words. Very un-Presidential.") According to Varoufakis, the President was referring less to austerity's unpleasantness than to its ineffectiveness. Obama meant that austerity "doesn't work — it creates misery, and it's self-perpetuating, and it's self-defeating." [The New Yorker]
Read the whole piece at The New Yorker.
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Jeva Lange was the executive editor at TheWeek.com. She formerly served as The Week's deputy editor and culture critic. She is also a contributor to Screen Slate, and her writing has appeared in The New York Daily News, The Awl, Vice, and Gothamist, among other publications. Jeva lives in New York City. Follow her on Twitter.
-
Lord of the Flies: William Golding’s modern classic is brought to ‘thrilling life’
The Week Recommends Anthony Lau’s ‘searing’ staging is anchored by an ‘extraordinary’ cast
-
Rising costs are making it harder for people to afford pets
Under the Radar Shelters are filling up as a result
-
Crossword: October 2, 2025
The Week's daily crossword
-
Judge rules Trump illegally targeted Gaza protesters
Speed Read The Trump administration’s push to arrest and deport international students for supporting Palestine is deemed illegal
-
Trump: US cities should be military ‘training grounds’
Speed Read In a hastily assembled summit, Trump said he wants the military to fight the ‘enemy within’ the US
-
US government shuts down amid health care standoff
Speed Read Democrats said they won’t vote for a deal that doesn’t renew Affordable Care Act health care subsidies
-
YouTube to pay Trump $22M over Jan. 6 expulsion
Speed Read The president accused the company of censorship following the suspension of accounts post-Capitol riot
-
Oregon sues to stop Trump military deployment
Speed Read The president wants to send the National Guard into Portland
-
Trump declares new tariffs on drugs, trucks, furniture
Speed Read He's putting tariffs of 25% on semi trucks, 30% on upholstered furniture, 50% on kitchen and bathroom cabinetry and 100% on certain drugs
-
Amazon reaches ‘historic’ $2.5B Prime settlement
speed read The company allegedly tricked customers into signing up for Prime membership that was then difficult to cancel
-
Trump DOJ indicts Comey, longtime Trump target
Speed Read The president is using the Justice Department to prosecute his political enemies