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Oct 21 2010

Stiglitz: Economics Doctor’s Rx for the Problems

(10 am. – promoted by ek hornbeck)

Paul Krugman linked to this chart from a paper by Mary Daly of the San Francisco Fed with the comparison of the Japanese economy to the current US economic morass.

Photobucket

Joseph Stiglitz, Nobel Prize winner, doctor of economics and professor of economics at Columbia University, appeared today on the Dylan Ratigan Show and offered his advice for radical surgery to get the money and the jobs flowing again.

Ratigan:

“What is the risk of not dealing with the vicious cycle that is becoming joblessness in America, which leads to foreclosure in America, which leads to bank dysfunctionality, which leads to less investing and that vicious cycle that clearly has tremendous peril? What is that peril?”

Stiglitz:

“Well, I learned years ago that if we didn’t do it, we would be exactly where we are today and if we don’t do it now, we are likely to be entering into a Japanese style malaise, low growth, high unemployment, literally for years to come that should be unacceptable.”

See chart above and listen to Stiglitz offer his “radical surgical” solution.

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