In an NPR interview, Nobel Prize-winning economist Joseph Stiglitz explains why public investments in infrastructure, technology and education aren’t only good for job creation – they guarantee the “future potential output” of the economy.
These types of investments pay huge dividends and have a high rate of return. By spending more on schools, roads and science and technology, the U.S. will be in a stronger position to create and attract jobs with a highly skilled workforce. In turn, these jobs and companies will drive economic expansion, and the resulting tax revenues can be used to pay down the deficit.
Stiglitz argues for these investments, and against “mindless austerity”, asserting extreme cuts to domestic spending won’t lower the deficit – and will instead have the opposite affect:
The economy is going to get weaker, tax revenues will go down, more people will be unemployed, expenditure for unemployment insurance will go up, expenditure for welfare payments will go up, and the savings and the deficit will be much smaller than they anticipated.
We’re already seeing, you know, you might say examples, case studies, of this. The U.K. began its austerity package and the economy has gone into a double dip.”
Listen to the full interview with Joseph Stiglitz here.
More To Read
February 15, 2023
Podcast: Getting to Lower Health Care Costs in Washington
EOI's Sam Hatzenbeler joins Washington's Indivisible Podcast to discuss our state's health care costs crisis and what the legislature can do to solve it
February 10, 2023
Thirty years of FMLA, how many more till we pass paid leave for all?
The U.S. is overdue for a federal paid leave policy
January 25, 2023
Top 5 Fixes for High Health Care Prices
High health care costs are driving Washington workers and families over the edge