Stiglitz: “The only thing that can be done (to help the economy in the near term) is fiscal stimulus, spending more money.”

In this segment of Chris’ and my interview with Joseph Stiglitz, Joe talks about another stimulus as the only effective thing the government can do in the near term to help the economy:

“The only thing that can be done is fiscal stimulus, spending more money.  And, the United States is in a sense a good position, because we can borrow at very low interest rates.  We’ve underinvested in education, technology, infrastructure for a couple of decades, particularly in the Bush years  The result of that is we have many high return investments, those investments pay far more than the cost of capital, and that means if we make those investments, the national debt in the intermediate term will actually be lower and debt sustainability will better, i.e., that is to say that the debt to GDP ratio will be lower.”

Previous interview snipets:

* Stiglitz: Probabilities of a double dip recession “certainly have increased significantly”
Stiglitz: Obama administration and the Fed have demonstrated an “inability to make economic judgements.”
* Stiglitz: “The Fed is very good at creating problems, not so good at resolving them…. QE3 won’t help”


Follow me on Twitter: @aravosis | @americablog | @americabloggay | Facebook | Google+. John Aravosis is the editor of AMERICAblog, which he founded in 2004. He has a joint law degree (JD) and masters in Foreign Service from Georgetown (1989); and worked in the US Senate, World Bank, Children's Defense Fund, and as a stringer for the Economist. Frequent TV pundit: O'Reilly Factor, Hardball, World News Tonight, Nightline & Reliable Sources. Bio, .

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