Joseph Stiglitz in the Washington Post
U.S. federal debt to exceed size of economy even before Biden stimulus is approved, CBO says
Joseph Stiglitz, University Professor, was quoted in the Washington Post.
America’s federal debt is set to exceed the size of the entire U.S. economy this year for only the second time since the end of World War II, a reflection of the extraordinary emergency measures approved by Congress in response to the coronavirus pandemic, the nonpartisan Congressional Budget Office said Thursday...
... Some economists say more deficit spending could be the help the economy needs. Joseph E. Stiglitz, a Nobel Prize-winning economist at Columbia University, said a significant gap remains between the nation’s actual economic output and its potential economic output. Lawmakers should be focused on closing that gap to reduce unemployment and expand the economy, he said.
“Deficit spending expands output and employment, which can generate more tax revenue,” Stiglitz said. “If as the result of a little more deficit spending we get more growth and higher employment, that should not be too big a worry.”