European officials thought that austerity was part of what they called their 'convergence policies,' of trying to bring countries together. Instead, it actually made things worse. There's more inequality within countries and more disparity across countries.

There is a broad consensus, not only in the United States but in most of the world, that if you are in an economic downturn, you need to stimulate. Germany seems to be an exception.

One of the things that happens when you have austerity is that wages get lower, and some people think lower wages in the short run can increase corporate profits.

Joseph Stiglitz Quotes