US Economic Folly Should Worry Us All

US President Bush's recent request for global financial support to pay for the war in Iraq has met with little sympathy and more than a little gloating from countries who argue the US should never have entered Iraq. Compounding the world's amusement at Washington's financial problems are the Bush tax cuts that have decimated the budget surplus that existed when he came into office. In this article, economist Joseph Stiglitz offers a scathing critique of Bush's economic policies but tempers it with a warning to countries that are dependent on the American economy for global economic growth. America's massive borrowing will suck up savings from other countries, he says, while the trade deficit may be met by damaging protectionist policies. The world should not respond to America's floundering economy with laughter, Stiglitz cautions, but with concern. – YaleGlobal