Joseph Stiglitz: Leaders In Europe Are Hooked On "Deficit Fetishism"

Joseph Stiglitz

Photo: AP

Nobel Prize winning economist Joseph Stiglitz has lambasted Europe’s leadership for decisions of austerity budgets, saying that they are fixated on “deficit fetishism,” according to Bloomberg.Stiglitz argues that austerity programs are preventing economic and job growth in Europe because it is stopping countries from properly recovering. 

His argument gained support yesterday, when GDP statistics were released in Europe, and showed a two-speed recovery throughout the eurozone. Essentially, those states on the fringe making deep austerity cuts to comply with eurozone regulations on deficits and the provisions of their bailout packages are seeing slow growth, while the core countries of Germany and France remain economically successful.

The UK, which has also made sharp austerity cuts, is now fretting on its economy’s comparative weakness vis-a-vis Germany and France.

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