Stiglitz: This Is No Time for Austerity

Paul Krugman isn’t the only Nobel Prize-winning economist saying austerity measures are threatening to derail the economic recovery — not help it. Columbia University’s Joseph Stiglitz tells CNBC that there is a misconception that government cutbacks inspire confidence in the private sector. He says there is a “very high risk” of a double-dip recession, and says the U.S. needs to continue a program of monetary and fiscal stimulus, while changing its pattern of spending and taxation. It should focus on high-return investments like education and infrastructure, he says, and use more tax incentives to promote business investment.