Skip to main content

 Joseph Stiglitz: “Romney’s Plan is Based on Magic”

 Joseph Stiglitz: “Romney’s Plan is Based on Magic”
What’s at stake in this election for the U.S. economy?

Quite a lot. First, there’s what we call the macro-economy. The budget cuts that Romney/Ryan propose will certainly slow growth. If the European downturn continues that could tip us into a recession. The cuts certainly won’t provide the kind of stimulus that Obama’s jobs bill, for instance, pushes. Romney’s plan is based on magic: Just because he gets elected, the economy is supposed to take off. There is no evidence that anything like that would happen. Quite the contrary — I think the opposite would happen. The business community would see the cutbacks coming and that would itself cause a slowdown in the economy.

So that’s the macroeconomy. Secondly, the Romney/Ryan budget promises to spend more on the military while cutting taxes and cutting the deficit, and that means only one thing. If you look at the arithmetic, it means less investment in infrastructure, R&D, education … it just can’t add up any other way. And that means we’ll be growing more slowly in the future.

The irony is that these two things — lower growth now and lower growth in the future — means that our debt-to-GDP ratio won’t improve, it will get worse. So even if you were foolish enough to think that the debt-to-GDP ratio is the main determinant of future prosperity — which it’s not — the Romney agenda will fail.

And although I don’t like what’s called “presidential economics,” where you look solely at what happens under a particular presidential regime, the fact is that Romney has many of the same economic advisers that Bush did. Those economic advisers essentially doubled the debt in eight years. And that was in a period of relatively high growth. Why would we think that wouldn’t happen again? I don’t see any reason for that. Particularly when the global environment is more adverse.

And then the third part has to do with what kind of society we will be. If Romney wins, we will become a more divided society, a more unfair society. And that in turn will bring greater inequality, and will also undermine our growth.

Comments

Popular posts from this blog

Call for the World Social Forum Free Palestine, Nov. 2012 in Brazil

Call for the World Social Forum Free Palestine, Nov. 2012 in Brazil
Occupied Palestine is part of every free heartbeat in this world and her cause continues to inspire solidarity across the globe.  The World Social Forum Free Palestine is an expression of the human instinct to unite for justice and freedom and an echo of the World Social Forum’s opposition to neo-liberal hegemony, colonialism, and racism through struggles for social, political and economic alternatives to promote justice, equality, and the sovereignty of peoples.

The WSF Free Palestine will be a global encounter of broad-based popular and civil society mobilizations from around the world. It aims to:

1. Show the strength of solidarity with the calls of the Palestinian people and the diversity of initiatives and actions aimed at promoting justice and peace in the region.

2. Create effective actions to ensure Palestinian self-determination, the creation of a Palestinian state with Jerusalem as its capital, and the fulfillme…

Did Certain Foreign Governments Facilitate the 9/11 Attacks?  : Information Clearing House - ICH

Did Certain Foreign Governments Facilitate the 9/11 Attacks?  : Information Clearing House - ICH

Did Certain
Foreign Governments Facilitate the 9/11 Attacks?




– and why is the US government keeping the evidence
a secret?



By Justin Raimondo




August 29, 2014 "ICH"
- "Anti
War
" - -
Some thirteen years after the event, the shadow of
the

9/11 terrorist attacks on the World Trade Center
in Manhattan and the Pentagon still darkens our
world. The legacy of that terrible day has impacted
not only our foreign policy, bequeathing to a new
generation an apparently

endless "war on terrorism," it also has led
directly to what is arguably the most

massive assault on our civil liberties since the
Alien and Sedition Acts. Getting all the information
about what happened that day – and why it happened –
is key to understanding the cou…