Joseph Stiglitz criticises austerity at the expense of the poor

Following the disappointments of 2010 Europe and the US don't have much to look forward to in 2011, writes the Economics Nobel Prize winner Joseph E. Stiglitz in the business paper Világgazdaság: "Unfortunately, the New Year's resolutions made in Europe and America were the wrong ones. The response to the private-sector failures and profligacy that had caused the crisis was to demand public-sector austerity! The consequence will almost surely be a slower recovery and an even longer delay before unemployment falls to acceptable levels. There will also be a decline in competitiveness. While China has kept its economy going by making investments in education, technology, and infrastructure, Europe and America have been cutting back. It has become fashionable among politicians to preach the virtues of pain and suffering, no doubt because those bearing the brunt of it are those with little voice - the poor and future generations... . So this is my hope for the New Year: that we stop paying attention to the so-called financial wizards who got us into this mess - and who are now calling for austerity."

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