In an interview published the newspaper "Libération", the former chief economist of the World Bank and Nobel Prize in Economics, Joseph Stiglitz, says that the path of austerity chosen by the European Union delayed the start of the crisis.
Without drawing any dramatic scene, says that in 2011 will not be an easy year for the euro zone because there is uncertainty that the same six months ago. The background of stability, although essential, is not enough, only a temporary remedy for small economies attacked. But if Europe s'aflebeix more, the more rope apretarà and anxiety grow above its potential to meet debts.
What makes you fear most is the way chosen by the austerity of Europe, under pressure from the markets. This delayed the start of the crisis, the weaker ties weaken the eurozone and the European Union. The year 2009 began a coordinated global response, quickly stopped in 2010. The divisions will have won and have reappeared the old orthodox ideas. The free market ideology which has allowed financial bubbles, tie the hands of politicians, austerity is the only answer to the current imbalances. Most European leaders have not understood the need to attack the regulatory system and give power back to finance, they do not know anything about economics, what to do. The world of money influences the political processes ...
To change this negative dynamic, Stiglitz suggests a concerted action in Europe, but also to the U.S. to invest and ensure that the poorest, affected by unemployment unseen and future generations do not pay the price a crisis when they are responsible. Just see that the average American wage is lower than ten years ago. People with less education are seen falling 25% their salaries in 30 years. Must then restart the machine and inject funds to education, health, research and infrastructure.
Stiglitz puts as examples of the successful performances in China and Argentina. In the case of China, was a plan to relaunch even be a crisis have been less touched by the rich countries. The result has been that the country has been strengthened and will be the first world power sooner than planned.
As for Argentina, restructure debt and set a fixed exchange rate with the dollar. From 1999 to 2002 were years of austerity and rescue by the IMF, but now the poverty rate has been reduced by 80% and although unemployment is high, does not exceed 8%. Thus overcoming the crisis is best the United States.
Therefore, the conclusion is no need to delay decisions, because time to lose now after we missed.
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