US faces ‘anaemic recovery’, says Stiglitz

[OhioChick]

Source: Bloomberg

7 Aug 2010, 0212 hrs IST,Bloomberg

SYDNEY | HONG KONG: Nobel Prize-winning economist Joseph E Stiglitz said the US economy faces an ‘anaemic recovery’ and the government will need to enact another round of ‘better designed’ stimulus measures. The Obama administration took “a big gamble and it doesn’t look like it’s paying off,” Stiglitz said. “The recovery is so weak that it is not strong enough to generate new jobs for the new entrants in the labour force, let alone to find jobs for the 15 million Americans who would like a job and can’t get one.”

The ex-World Bank chief economist spoke as Mohamed A El-Erian, CEO at Pacific Investment Management, estimated the possibility of deflation and a double-dip recession in America at 25%. The US lost 65,000 jobs last month, according to a median forecast of 81 economists before the Labor Department report. The unemployment rate climbed to 9.6% from 9.5%, the survey showed.

Labor Department data also showed more Americans than projected filed for unemployment insurance, indicating employers are still cutting staff. Initial jobless claims climbed by 19,000 to 479,000 in the week ended July 31, the most since April, according to the data.

“It’s absolutely clear that you need a second round of stimulus,” Stiglitz said. “It needs to be better designed. It needs to be focused more on returns on investment, education, infrastructure, technology. And if you do those kinds of high-powered investments, the long-term national debt will be actually lower and the growth in the future will be higher.”


Read more: http://economictimes.indiatimes.com/news/international-business/US-faces-anaemic-recovery-says-Stiglitz/articleshow/6267982.cms

[burnsei sensei]

1. Please note well:

the interview is carried in the India Times, not the New York Times.
I have also noted that Dr. Stiglitz was not called to testify before the Catfood Commission or in front of any other Congressional committees as yet this summer.
Too truthful eh?

[glitch]

2. Much.

The catfood commission is a very sick joke.

[G_j]

4. When Stiglitz speaks, I listen

well worth it

[bvar22]

3. For the Working Class and Poor, there won't be a "double dip".

We will be very lucky to maintain the Down Slope at the current rate.
When the government talks about "The Recovery", they aren't talking about us.



But at least there won't be any Wall Street Bankers clogging up the bread lines.

[DonCoquixote]

5. I know Warren

Is talked about as a replacement for geitner, but I myself would rather have this fellow in. He seems to be realistic, yet not so mopey that he cannot come up with a concrete plan. Then again, I can think of several High school economics Teachers
that can beat Timmy.

[Hawkowl]

6. Perhaps they would beat Timmy?

If we asked them very nicely?