Stiglitz warns US economy may contract next year
Washington: Nobel Prize-winning economist Joseph Stiglitz warned there’s a “significant” chance the U.S. economy will contract in the second half of next year, and urged the government to prepare a second stimulus package to spur job creation.
“The likelihood of this slowdown is very, very high,” Prof. Stiglitz told reporters in Singapore. “There is a significant chance that the number will be in the negative range.”
Prof. Stiglitz, a professor at Columbia University, called on Washington to make more funds available to state governments who face a drop in tax revenue. The U.S. economy, the world’s largest, must grow at least 3 percent to create enough jobs for new entrants into the labour force, he said.
The unemployment rate fell to 10 percent in November from 10.2 percent in October.
“If you don’t prepare now, and the economy turns out to be as weak as I think it’s likely to be, then you’ll be in a very difficult position,” he said.
The economy grew at a 2.8 percent rate in July through September, after a record four straight quarters of contraction.
More from India
More from World
More from Sports
More from Entertaiment
- Grief stricken people shout slogans as Kalam's body carried out of hospital
- Punjab: Gurdaspur gunbattle ends, all terrorists killed
- Mumbai blasts case: Maharashtra govt opposes Yakub Memon's mercy plea in SC
- PM Modi condoles APJ Abdul Kalam's death
- Kalam's advisor recalls his last moments with the great scientist
- FORMER PRESIDENT OF INDIA APJ ABDUL KALAM PASSES AWAY
- Politicos mourn death of former president APJ Abdul Kalam, hail him as 'Missile Man of India'
- When UN declared Dr APJ Abdul Kalam's 79th birthday as World Students' Day
- SC hearing on 1993 Mumbai blasts convict Yakub Memon's curative plea
- Cricket series can't happen along with terror attacks: Anurag Thakur warns PCB