Nobel Prize in Economics asks to approve Biden's economic package to avoid “anemic and devastatingly incomplete recovery”

Joseph Stiglitz points out that the United States is in the midst of an economic recession like no other it has ever experienced, so don’t to approve Biden’s aid package would be “irresponsible and reckless”

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For the Nobel Prize in Economics, Joseph Stiglitz, it is necessary that Congress approve the financial aid package from President Joe Biden of $ 1.9 trillion, because failing to do so, the United States could “risk an anemic and devastatingly incomplete recovery” .

The economist wrote in his collaboration for CNN Business that some voices on the right are concerned that the federal government “may be doing too much, especially to help the unemployed, the states and the middle class workers” and that afflicts them that a recovery in the shape of a “V” and “overspending” can trigger inflation .

The Nobel states in his editorial space not to agree with that position, because every policy involves balancing risks and deciding what to do if in the worst case a negative prognosis comes true.

For Stiglitz it is better to bet on the help of the package Biden and if the economy overheats, consider that the Fed can monitor it at through real-time data and that if necessary could increase interest rates to maintain balance.

Stiglitz explains that the $ 1.9 trillion of Biden are destined to deal with the financial consequences caused by the pandemic , applying vaccines, opening schools safely, providing assistance to vulnerable people and helping states and localities is that their income has been affected.

For the expert the policy is unpredictable and you may only get one chance to act . As an example mention the recession of 2008 , when the then president Barack Obama signed a Stimulus Package $ 83, 000 millions of dollars, when it was thought that at least $ 1 trillion was needed, which ended in a weak and lopsided recovery. USA The US needed a program larger and more equitable, but by when the administration Obama realized, it was late.

Stiglithz points out that the country is in the midst of an economic recession like no other ever experienced , so you can’t specify where the economy will go and the exact dose of “medicine” you need to recover.

The Nobel supports the “recipe” of Biden to try to control the “patient”, considers that doing something less than what the president has proposed would be “irresponsible and reckless” that if more “medicine” is necessary, changes could be made in the regime “such as tax adjustments and (in) interest rates” .