Hello Tokyo.
The U.S. faces a serious risk of economic malaise lasting several years. He did not rule out a multi-decade period of slumber and false starts. True to his roots he advocates government spending to keep things flowing along the way. However, I give him credit for understanding that any and all future government stimulus programs must be targeted at technology, education and infrastructure.
I said at the time of the passage of our current stimulation that its fatal flaw would be the lack of thematic 'hugeness' for lack of a better term. If you're going to borrow $800 billion to boost the economy, give us something substantial in return. A modern day Hoover Damn or TVA, that we can at least be quasi-proud in acknowledging: such as a nationwide network of electric car charging stations like what is being deployed in Israel.
So Stiglitz seems to understand that any future borrowed money to be wasted down the government money hole must give us something in return both in substance and in theme.
And one more thought, as long as we're Socialists, why don't we use some borrowed dough to accumulate natural resources around the globe. The Chinese are scooping up the materials for the next century while we waste trillions playing bailout bingo with failed financial institutions. Could we have some leadership and vision from Washington, please.
Nobel Prize recipient Dr, Joseph Stiglitz on Tech Ticker with Aaron Task and The Blodge:
In the short term, there is a "very remote likelihood" the job market will turn around anytime soon, the famed economist says. Therefore, it will still feel like a recession for many Americans even if GDP does produce positive readings.
Stiglitz also cited a number of potential negative speed bumps the recovery may hit, including:
- Weakness in commercial real estate.
- Huge deficits at the state level, leading to more job losses.
- Many Americans at risk of having unemployment benefits expire.
- Weakness in our major trading partners, and overall lack of final demand.
In fact, Stiglitz says the next few years may be characterized by weak growth and false starts on the road to recovery, not unlike Japan in the past 20 years or America during the Great Depression.