Nobel Prize Winning Economist Says Europe is "Commiting Suicide"
Joseph Stiglitz warns that Europe is on a suicidal economic path
Austerity is insanity
Most of the Republicans on Capitol Hill, along with a good number of Democrats, are calling for drastic cuts in the U. S. budget: slashing benefits, cutting infrastructure, and gutting social programs. According to Nobel Prize winning economist Joseph Stiglitz, a professor at Columbia University, that's exactly the opposite of what we should be doing. Stiglitz is especially concerned with what's happening in Europe. Speaking in Vienna, Austria on Thursday, April 26th, Stiglitz warned that the draconian austerity measures imposed upon Spain, Greece and Italy are a suicidal path for Europe, and that such policies have never worked in any large country. "I think Europe is headed to a suicide...There has never been any successful austerity program in any large country," said the former World Bank economist. Noting that Spain has a youth unemployment rate of fifty percent, with "no hope of things getting better anytime soon," Stiglitz said "What you are doing is destroying the human capital, you are creating alienated young people."
Insisting on cutting debts and deficits as a way to restore confidence in euro zone economies is likely to have the opposite of its intended effect, according to Stiglitz. "What they have agreed to do last December is a recipe to make sure that the euro zone dies as we know it. I hope the debate will be what are the things we can do to promote growth rather than how do we strangle each other."
Greeks Protest After Pensioner Suicide
Inside Job: How the Financial Collapse was engineered
Preview image from alternet.org