Davos 2013: Heard in Davos

By Bloomberg Briefs - 2013-01-25T17:28:51Z

Photograph by Brent Lewin/Bloomberg

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Joseph Stiglitz

On the European economy:

Europe's government spending cuts are "really stifling growth. "What they've been focusing on is austerity, and austerity makes every one of the other problems worse. Austerity has been tried over and over again. Herbert Hoover tried it back in 1929 and converted the stock market crash into the Great Depression." History shows that in nations with the best economic growth, government spending "has played an important role" by supporting new technologies from the telegraph to the Internet that led to the creation of new industries.