Photo: Business Insider
Last night, the Institute for New Economic Thinking and the Fashion Institute of Technology hosted a conversation with Nobel laureates Joseph Stiglitz and Paul Krugman.The key discussion topics were the sluggish U.S. economy and the upcoming elections.
Both economists pointed to the Great Depression as a road map for how the U.S. can get out of its current slump.
Krugman argued that one of the key factors that helped stimulate the economy out of the Depression was the buildout of infrastructure, which is exactly what state and local governments have been cutting back on today.
“We don’t talk about austerity, but we’re doing it!” interjected Stiglitz. He further argued that the biggest risk to the economy right now would be a Mitt Romney victory.
Krugman then joked that he hopes that neither candidate will follow through on any of their proposed cuts. He went on to say that it says something about the state of the economy when “the best hope is that [the presidential candidates] are lying through their teeth.”
Both agreed that spending is crucial for economies coming out of a crisis, and the if government’s do cut, they risk send their countries into depression.