Joseph Stiglitz: Cutting Taxes Won't Help Recovery

10/13/2010 09:29 am ET | Updated May 25, 2011

The US government should stimulate investment in order to ensure solid and sustainable economic growth, not cut taxes, Nobel Prize-winning economist Joseph Stiglitz told CNBC Wednesday.

Stiglitz, who earlier this month accused the Federal Reserve and the European Central Bank of throwing the world into "chaos" with their money-printing, said the first round of the stimulus did work for the US economy and that without it unemployment would have peaked at 12 percent or even 13 percent.

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