BUSINESS
02/08/2013 06:02 pm ET Updated Feb 08, 2013

Paul Krugman: Global Austerity 'An Unethical Experimentation On Human Beings'

Paul Krugman doesn't just think austerity is bad economic policy; the Nobel Prize-winning economist says it's just plain wrong.

"We've basically had an unethical experimentation on human beings going on across the world right now," Krugman told HuffPost Live on Friday. "All these countries are pursuing austerity policies, and in doing so, they are giving us evidence on what actually happens when you do those policies."

Several European countries -- including Great Britain, Greece, Spain and Italy -- have slashed their budgets in recent years. Those countries have seen high unemployment rates and stagnant economies.

"It's been a disaster," Krugman said of austerity in Great Britain. "They have gone back into recession."

The U.S. has also pursued austerity, albeit to a smaller extent. The U.S. government has cut 719,000 jobs since President Barack Obama took office. And the unemployment rate still is far higher than before the recession.

You can watch the whole segment here.

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