On NPR today I happened to hear both Arundhati Roy and Joseph Stiglitz (in separate interviews). I've had the impression of Roy as somewhat overwrought in her criticism of globalization and capitalism, and some of her language today was reminiscent of that image. But she also spoke eloquently about human rights, and the need to protect the poor in India. It was clear that she really looks at what is going on and feels for those who are downtrodden. As a human rights activist, she makes a lot of sense, probably not so much as a commentator on economics.
Not that economists always agree. Joe Stiglitz politely criticized US government policy for putting lots of money into the banking system, but not doing enough to boost aggregate demand. I seem to remember a dig at Fed chairman Bernanke. Stiglitz argued that growth was not going to be strong enough to create a significant number of jobs. It makes sense to want to get things moving fast enough so that jobs are created and there is some momentum generated in the economy. I wonder if the federal government has room to spend more, given its large deficit. The high debt overhang means a slow recovery as adjustments are made on that front, and boosting aggregate demand may not do much either. I have a sense that there is also still an excess supply in real estate, at current prices. Seems that the US is in for a painful adjustment period.
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