Austerity kills: Conservative cure worst thing for what ails the economy says Stiglitz

Governments around the world are heading down a path to economic suicide.

So said Nobel Prize-winning former chief economist of the World Bank, Joseph Stiglitz, to hundreds of well-heeled financiers and decision-makers who paid a bundle to hear him in Toronto.

With a voice as gruff as gravel, and an energy bristling with urgency, he told governments in Canada and the rest of the world now is the moment to address unmet needs, and use underutilized resources. Failure to do so would unnecessarily prolong the tough times.

Addressing the 5th Toronto Forum on Global Cities, Stiglitz challenged leaders who say it is time for government to get their fiscal houses in order by cutting.