Focus on Stimulus, Not Austerity: Stiglitz

“We have to get the economy going before firms are going to invest,” said Stiglitz, who is also a Columbia University professor. “There is an idea somehow that when the government cuts back, the private sector will get confidence and that will lead to more spending. The fact is that the households in America and many other places around the world are burdened by debt, and business is not going to spend as long as government and exports and consumers are not spending.”