Five Years In Limbo – Joe Stiglitz – Social Europe Journal

This is a powerful, MUST-READ article from Nobel Prize winning economist, Joe Stiglitz, published in the Social Europe Journal. Check it out!

via Five Years In Limbo – Joe Stiglitz – Social Europe Journal.

This article brilliantly sums up many of my own conclusions but much more effectively than I ever could.

The cost of financial deregulation, the financial collapse of 2008, and the subsequent misguided policies of excessive austerity have been truly eye-watering. Joe Stiglitz talks of a combined output loss in the US and Europe of USD 5 Trillion. Because of austerity, growth is still severely constrained, and large sections of the US and Europe have incomes way below 2008 levels. More alarmingly, US and UK growth is artificially stimulated by government guarantees or loans for domestic housing. Meanwhile, the austerian policy-makers and their shadowy sponsors are still in power in Washington, Berlin and London.

Let me turn this to an open question:

Are the austerian policy-makers and their sponsors in Washington, Berlin and London triggering a repeat of the financial collapse of 2008?

Any thoughts?


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7 responses

  1. Pingback: The Great Malaise Drags On – Joe Stiglitz – Social Europe Journal « Dr Alf's Blog

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  6. Joe Stiglitz has put the case for action on the Western economies with his usual finesse and elegance and as he and Dr Alf both say, the price of Austerity without additional complementary measures is frightening.

    President Obama seems intent on spending more money he does not have and is doing too little to create exports and jobs.

    Generations of people will never work or work again unless there is much more growth.

    In the UK, less than 1.5% annualiZed growth is heralded as a great achievement when to have anything like full employment the figure needs to be 3%.

    America needs a return to Glass Steagall and a swift replacement of Obama and Kerry who are both out of their depth and wasting blood and treasure on unwinnable and costly foreign wars.

    We,in the UK,need an urgent replacement to Cameron, Hague and Osborne, complete reform and reduction of the public sector and a Messianic drive for exports, enterprise growth, population reduction and health/productivity improvement.

    Europe needs complete reform and revitalization, particularly within its Southern rump.

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