Stiglitz addresses Iraq war economic aftermath
"We know that wars can stimulate the economy according to Keynes's economics. However, we also know that you don't have to fight a war to get the economy right," he said. "The Iraq war expenditures actually do not stimulate the economy as much as improvements in education, health care and other social programs in the long run."
According to Stiglitz, another depressing effect the war has on the U.S. economy is the large accumulation of national debt.
"Deficits do matter," he said, warning policy makers not to overlook the potential damaging effects of the permanent state of deficit spending.
The current increasing national debt could also have the potential to lower private capital investments, thereby provoking a general slowdown in relatively stable economic growth that America has experienced since 2003.
Most importantly, he called for a more comprehensive system of checks and balances to curtail U.S. military power around the globe.
Finally, Stiglitz talked about one of today's most controversial policy issues - bringing back the troops:
"If we leave today, there will probably be chaos. If we leave in four years, there will probably be chaos as well, though most Iraqis will probably want us to leave today."
In fact, even if America does stabilize the situation there, Stiglitz emphasized that Iraq is only a small country within the entire region.
"Terrorism will probably move to other countries, and all in all, is this the right way to spend trillions of dollars just for a possible national security threat?"
In his concluding remarks, Stiglitz re-emphasized the importance of citizens and taxpayers being fully informed about the true cost of an ongoing war.
"We went to the war for the sake of democracy, and part of being informed in a democracy is knowing the cost [and] making the cost of the war transparent to the people. The true cost of this war is that we will pay the cost of this war in the decades to come."
Stiglitz is currently a professor at Columbia University's Business School, Graduate School (in economics) and School of International and Public Affairs.
He was awarded the Nobel Prize in economics in 2001 and was also a member of the Council of Economic Advisors from 1993-1995 for the Clinton administration.
According to Stiglitz, another depressing effect the war has on the U.S. economy is the large accumulation of national debt.
"Deficits do matter," he said, warning policy makers not to overlook the potential damaging effects of the permanent state of deficit spending.
The current increasing national debt could also have the potential to lower private capital investments, thereby provoking a general slowdown in relatively stable economic growth that America has experienced since 2003.
Most importantly, he called for a more comprehensive system of checks and balances to curtail U.S. military power around the globe.
Finally, Stiglitz talked about one of today's most controversial policy issues - bringing back the troops:
"If we leave today, there will probably be chaos. If we leave in four years, there will probably be chaos as well, though most Iraqis will probably want us to leave today."
In fact, even if America does stabilize the situation there, Stiglitz emphasized that Iraq is only a small country within the entire region.
"Terrorism will probably move to other countries, and all in all, is this the right way to spend trillions of dollars just for a possible national security threat?"
In his concluding remarks, Stiglitz re-emphasized the importance of citizens and taxpayers being fully informed about the true cost of an ongoing war.
"We went to the war for the sake of democracy, and part of being informed in a democracy is knowing the cost [and] making the cost of the war transparent to the people. The true cost of this war is that we will pay the cost of this war in the decades to come."
Stiglitz is currently a professor at Columbia University's Business School, Graduate School (in economics) and School of International and Public Affairs.
He was awarded the Nobel Prize in economics in 2001 and was also a member of the Council of Economic Advisors from 1993-1995 for the Clinton administration.
Viewing Comments 1 - 1 of 1
sana
posted 7/14/08 @ 5:50 PM EST
hi thanx for inofrmation.
i have a question if you please give me some information what is the long-term consequense of iraw war?
Post a Comment