Joseph Stiglitz’s prognosis for the pandemic …

US economist and Nobel Laureate Joseph Stiglitz has asserted that in the world “there will be no economic recovery until we emerge from the pandemic” during his participation in the closing of the 10th edition of the Puerto de Ideas Festival this Sunday. In addition, He estimated that “the second wave of covid-19 will be worse” than the first epidemic and, therefore, economic recovery will be more difficult..

“You have to spend what is necessary (…), the emphasis must be on reconstruction so that it is better, as (Joseph) Biden says, ”said Stiglitz, referring to the postulates of the Democrat who became President of the United States this Saturday.

The economist, who chairs Columbia University’s Initiative for Policy Dialogue think tank, also analyzed the impact of the administration of current President Donald Trump both locally and internationally. “Trump widened the gap by cutting taxes, which increased the deficit by billions of dollars, but he was very good at hiding it.”, a point.

“One dollar, one voice. We’re in a situation where a minority rule politicians and do not recognize majorities. The result of this it’s a distortion of democracySaid Stiglitz, who chaired the Council of Economic Advisers during the presidency of Democrat Bill Clinton (1993-2001).

The Nobel Prize for Economics participated in the closing of the Puerto de Ideas Festival and, during his speech, also expressed concern about the impact of the pandemic on emerging economies.

“Developing countries can only allocate a small part of their GDP (gross domestic product) to cope with the effects of the pandemic, and they are obviously more affected”Stiglitz explained, warning that “There are already countries on the brink of crisis, like Argentina, Ecuador and Lebanon”.

According to the Nobel laureate, who was also head of the World Bank and head of the United Nations Commission of Experts on Reforms of the International Monetary and Financial System, the countries that have mastered the pandemic best are those that are starting to recover their savings.

“It will be very difficult to recover a global economy if there are many countries in the world with significant debt.”, he expressed. For the economist, multilateral financial organizations should restructure the short-term debt of developing countries into long-term loans, something powers like the United States and India have so far opposed.

In his most recent book, “Progressive Capitalism. The Answer in the Age of Troubles”, Stiglitz argues that capitalism must evolve to save itself and respond to new societal challenges: global warming, artificial intelligence, demographic changes and weakening institutions. who support liberal democracies.