In the words of a Nobel Prize: “Argentina made progress, but should invest in high-tech”
August 26, 2011
Economy Nobel Prize winner Joseph Stiglitz spoke briefly about the economic situation in Argentina, noting that there was “a major progress” but that they should “diversify” the economy.
“Argentina made a major progress in recent years, but it must diversify its economy, investing in high technology, because it is still a dependant country,” the economist said.
For example, he noted that “a decline in Chinese growth would put downward pressure on commodity prices and hit Argentina, because it is very dependent on these prices.”
From the case of our country, Stiglitz criticized the adjustments made in response to financial crises. ”The best tool to confront the deficit is growth, and for that we need more fiscal stimulus. Austerity is going in the opposite direction. It is a wrong view, the same formula applied by the IMF in Argentina. We know what happens: the economy slows down, then goes into recession and finally ends with a depression. Why European countries and the United States applying these measures voluntarily, it escapes me. But we have to recover the path of full employment and for that we require to boost spending and not to reduce it,” he said.
“The only significant deficit is the one in the United States in terms of creating jobs. There are 14 million Americans unemployed, but there are actually 25 million people who can not get a full time job. This situation will only worsen the crisis,” said the Nobel Prize.
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