The diagnosis is that politics is at the root of the problem: That is where the rules of the game are made, that is where we decide on policies that favor the rich and that have allowed the financial sector to amass vast economic and political power. The first step has to be political reformRead it at The European
Stiglitz - Austerity, and a New Recession?
Interview with Joseph Stiglitz (h/t INET)
Very good interview with Stiglitz on the current crises in Europe, the US and economics. Stiglitz recognizes the importance of and need to include credit in monetary economics, as well as the underlying currency issue at the heart of Europe’s troubles. His willingness to portray politics as the heart of the problem is a bit surprising and should certainly be commended. Unfortunately I share his fear that economic outcomes in both the US and Europe will have to get significantly worse before any real change occurs.