European, US Austerity Drive is Suicidal: Nobel Economist Stiglitz
May 2, 2012 Europe is headed down the same path that most Republicans -- and many Democrats -- are suggesting for the US: reductions in the public sector, cuts in benefits, slashing investments in infrastructure and education.
Nobel Prize-winning U.S. economist Joseph Stiglitz speaking in Vienna, Austria Thursday night said that it's a suicidal path for Europe -- and that such a policy has never worked in any large country.
Youth unemployment in Spain has been at 50 percent since the crisis in 2008 with “no hope of things getting better anytime soon,” said Stiglitz, who is a professor for economics at Columbia University. “What you are doing is destroying the human capital, you are creating alienated young people.”
In an interview earlier this week in The European, Stiglitz said, "When you look at America, you have to concede that we have failed. Most Americans today are worse off than they were fifteen years ago. A full-time worker in the US is worse off today than he or she was 44 years ago. That is astounding – half a century of stagnation. The economic system is not delivering. It does not matter whether a few people at the top benefitted tremendously – when the majority of citizens are not better off, the economic system is not working."
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