Stiglitz on austerity

"Austerity is not only a recipe for pain now, but for more pain in years to come." 

Joseph Stiglitz doesn't see a bounce in the economy, and thinks the U.S. has only two real options - more stimulus or a debt restructuring.

Here are some of his suggestions:

• Repeal tax-cuts for rich Americans.
• End wars in Iraq and Afghanistan that cost trillions of dollars.
• Increase stimulus and programs that would get Americans back to work because it will generate massive tax revenues.
• A Medicare D, with a provision that allows the government to negotiate prices instead of going with those set by pharmaceuticals. He believes this move alone could save the U.S. trillions.
• A "Homeowners Chapter 11" that would allow homeowners to continue to possess their homes, while they restructure their debt and continue to pay down their mortgages. 

"It doesn't do any body any good to force these people out of their homes… An economy in which you have homeless people and empty homes doesn't make any sense, and that's where we're going."