Nobel-laureate economist Joseph Stiglitz warns that there’s a “significant” chance the U.S. economy will recede in the second half of 2010, and urged Washington to prepare a second stimulus package to spur job creation.
AP: “The likelihood of this slowdown is very, very high,” Stiglitz told reporters in Singapore. “There is a significant chance that the number will be in the negative range.”
“If you don’t prepare now, and the economy turns out to be as weak as I think it’s likely to be, then you’ll be in a very difficult position,” he said.
The U.S. economy expanded at an annual rate of 2.8% in the quarter that ended in September, less than the government’s 3.5% reported in October, after a record four straight quarters of contraction. For most people however, the recovery will not feel real until the jobs and the housing market improves. The unemployment rate fell to 10% in November from 10.2%in October.
Jobs may still be hard to find well into 2010 as businesses remain reluctant to hire, economists say.