Tags: Joseph | Stiglitz | debt

Stiglitz: Don't Worry About Record High U.S. Debt

Wednesday, 24 Feb 2010 02:56 PM

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
Not to worry that U.S. debt has reached unprecedented levels, says Nobel Prize-winning economist Joseph Stiglitz.

"The United States has absolutely no real problem servicing the debt at the current level,” Stiglitz says.

“We should remember that what got us into the trouble we’re in, is that the financial markets were excessively short-sighted,” Stiglitz says. “They were focusing on the here and now, and not on the long run,” he tells Tech Ticker.

“The point I would emphasize is, that if we spend money in ways that yield even a moderate return — investments in education, technology, infrastructure — then in fact the long-run national debt will be lower.”

Spending more money today stimulates the economy and provides more tax revenue, Stiglitz contends. “By investing, we get higher growth over the long run,” he says. “All we need is a return of five or six percent on those investments, and the evidence is overwhelming that historically, we’ve gotten a much higher return.”

Stiglitz says he hopes that the bipartisan panel President Barack Obama is establishing to tackle the debt problem will refrain from “excessive short-sighted" behavior.

“We have to be careful not to fall into the same trap,” he says.

Mainland China's holdings fell to $755.4 billion at the end of December from a peak of $801.5 billion in May. The country also shifted into longer-dated Treasuries, The Wall Street Journal reports.

Japan is, on paper, again the largest foreign holder of U.S. government debt.




© 2014 Moneynews. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

War College to Make Final Decision on Montana Democrat Sen. Walsh

Wednesday, 30 Jul 2014 21:21 PM

The U.S. Army War College will have the final say over whether any punishment is warranted in a plagiarism investigation . . .

Ted Cruz Bill Would Curb Obama's Power to Grant Amnesty

Wednesday, 30 Jul 2014 20:41 PM

Sen. Ted Cruz has long criticized President Barack Obama for an executive order Cruz says effectively grants amnesty to  . . .

Scientists: Earth Narrowly Escaped Devastating 2012 Solar Storm

Wednesday, 30 Jul 2014 19:07 PM

A powerful solar storm's near-miss with Earth two years ago could have wreaked massive havoc, but businesses and governm . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved