Austerity? Not Now

Joe Stiglitz argues that austerity is the wrong approach to getting out of our current 'slough of despond'. It failed in East Asia and Latin America; it will likely fail in Europe if Ireland, Latvia and Greece are examples of what happens when this policy is implemented. What typically happens in these situations is that people lose confidence in the economy, which results in even worse economic conditions.

His solution to the current problems: "put America back to work by stimulating the economy; end the mindless wars; rein in military and drug costs; and raise taxes, at least on the very rich." Makes sense to me.