Where does Dr. Doom, Nouriel Roubini stand on the whole stimulus vs. austerity debate?
Actually, he wants it both ways.
In an FT op-ed penned with his pal Ian Bremmer, he argues for stimulus and austerity. It’s all a matter of timing.
Essentially it’s all about stimulus up front, with austerity right behind.
Meanwhile, President Barack Obama must again persuade America’s taxpayers that a new surge in government spending is needed to protect a fragile recovery – and at a moment when voters are telling pollsters that America’s debt is as great a threat as terrorism.So the president must also tell voters that the longer-term solution to America’s economic insecurity involves both austerity and sacrifice.
As for the big risks to the economy: Well, it’s basically that Obama can’t pull this off, that he can’t convince Americans (especially given the political climate) to embrace more spending, and that he can’t maintain any influence over spending abroad.
Still, go back to his general outline: stimulus up front, with commitments of austerity behind, and you’ll get a sense of what’s going to be a common playbook.