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Nobel Laureate Stiglitz Says EU Austerity Is Wrong Bet

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  • 'If that (austerity) happens I think it is likely that the economic downturn will last far longer and human suffering will be all the greater,' he said.
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  • The Myths of Austerity
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Reuters, in Common Dreams

The European Union will prolong the global downturn if policymakers in the bloc's big economies insist on austerity measures to cut budget deficits, Nobel Prize winning economist Joseph Stiglitz said on Tuesday (September 7).

Stiglitz, winner of the Nobel Prize for Economics in 2001, said austerity as a policy to end the global crisis was a 'disaster', adding that Europe was heading towards more economic difficulties if politicians meant what they say when they promised to cut back spending rather than just trying to calm down markets.

'If that (austerity) happens I think it is likely that the economic downturn will last far longer and human suffering will be all the greater,' he said.

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The Myths of Austerity, Paul Krugman, New York Times | NY

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  • The next time you hear serious-sounding people explaining the need for fiscal austerity, try to parse their argument. Almost surely, you’ll discover that what sounds like hardheaded realism actually rests on a foundation of fantasy, on the belief that invisible vigilantes will punish us if we’re bad and the confidence fairy will reward us if we’re good. And real-world policy — policy that will blight the lives of millions of working families — is being built on that foundation.
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  • This isn’t a recovery, in any sense that matters.
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