Joseph Stiglitz: Romney economic plan would “significantly” up the odds of recession

Mitt Romney shouldn't be expecting any checks in the mail from Joseph Stiglitz.

The Nobel Prize-winning economist — formerly chairman of President Bill Clinton’s Council of Economic Advisers — has just destroyed Mitt's economic plan.

In a wide-ranging interview today with Bloomberg, Stiglitz said a Romney presidency would be very bad news for the world's largest economy.

Why?

Romney's economic vision would mean less government spending, which in the language of Europe is currently pronounced "austerity."

Here's the rationale:

Less spending by government is a dangerous proposition when consumers and businesses — the main drivers of economic growth in the US — are unable or unwilling to do it themselves.

The austerity approach is also what happened ahead of the 1929 stock market crash and the Great Depression, the noted economist drearily pointed out.

But Stiglitz didn't stop there:

“The Romney plan is going to slow down the economy, worsen the jobs deficit and significantly increase the likelihood of a recession."

He also said President Barack Obama's economic approach is what's needed right now.

Obama recognizes "the need to stimulate the economy," he said in the Bloomberg interview.

Stiglitz, who's promoting his new book “The Price of Inequality: How Today’s Divided Society Endangers Our Future," also praised President Obama for worrying about the consequences of economic inequality. 

Here's the Bloomberg video of Stiglitz discussing inequality, and other things currently on his mind: