World renowned and Nobel Prize-winning economist Joseph Stiglitz, told reporters today that economic growth of the U.S. economy is likely to slow in the second half of 2010 and that preparations for a second stimulus should commence now.
Bloomberg.com: “The likelihood of this slowdown is very, very high and there’s a significant chance it may be in a negative range,” Stiglitz said. “If the economy recovers, we don’t need to spend the money. If you don’t prepare now and the economy turns out to be as weak as I think it will likely be, then you are in a very difficult position.”
Stiglitz’s comments echo the view of Nobel laureate Paul Krugman and counter the Obama administration’s judgment that it’s premature to consider another stimulus package after this year’s $787 billion measure. President Barack Obama has instead praised a more limited, $154 billion plan approved by the U.S. House aimed at shoring up the job market.
