--- title: "Meaning & Key Takeaway of: European officials thought that austerity…" description: "\"European officials thought that austerity was part of what they called their 'convergence policies,' of trying to bring countries together. Instead, it..." image: "https://sms4smile.com/quotes/i/5c8/joseph-stiglitz-1351_austerity_european-officials-thought-that-austerit_2516825.jpg" --- # European officials thought that austerity was part of what… ![“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.” quote by Joseph Stiglitz](https://sms4smile.com/quotes/i/5c8/joseph-stiglitz-1351_austerity_european-officials-thought-that-austerit_2516825.jpg) [Download](https://sms4smile.com/quotes/i/5c8/joseph-stiglitz-1351_austerity_european-officials-thought-that-austerit_2516825.jpg) [Open image](https://sms4smile.com/quotes/i/5c8/joseph-stiglitz-1351_austerity_european-officials-thought-that-austerit_2516825.jpg) > “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.” [Joseph Stiglitz](https://sms4smile.com/quotes/author/joseph-stiglitz/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. Austerity policies intended to unify economies actually increased inequality both within and between nations. **In simple terms:** Austerity worsened inequality. Key Takeaway Rethink fiscal policies to promote equity. Themes economics policy inequality convergence social justice Mood critical analytical Type economic political When to use this quote - government budgeting - EU policy debates - social welfare planning Key Concepts fiscal policy distributional effects macroeconomic stability Questions to Reflect On - How can policymakers balance fiscal discipline with social equity? - What alternative strategies could reduce disparity? A Different Perspective Austerity can be politically popular despite harmful outcomes. ★ ★ ★ ★ ★ No ratings yet [Austerity](https://sms4smile.com/quotes/about/austerity/) [Inequality](https://sms4smile.com/quotes/about/inequality/) ## Related quotes > [“Inequality? The countries with the biggest disparities in wealth are precisely those with the longest workweeks.”](https://sms4smile.com/quotes/rutger-bregman/inequality-the-countries-with-the-biggest-disparities-in-wealth-are/) [Rutger Bregman](https://sms4smile.com/quotes/author/rutger-bregman/) > [Too often, customary practices and discrimination on the basis of gender, ethnicity, race, religion, social status, or class are the root sources of pervasive…](https://sms4smile.com/quotes/said-musa/too-often-customary-practices-and-discrimination-on-the-basis-of/) [Said Musa](https://sms4smile.com/quotes/author/said-musa/) > [It has been convincingly demonstrated that countries where there are high rates of poverty, or high rates of economic inequality, are the countries with…](https://sms4smile.com/quotes/richard-dawkins/it-has-been-convincingly-demonstrated-that-countries-where-there-are/) [Richard Dawkins](https://sms4smile.com/quotes/author/richard-dawkins/) > [At a time when the European project is facing challenges, it's especially important to show the benefits of economic integration by continuing to invest…](https://sms4smile.com/quotes/barack-obama/at-a-time-when-the-european-project-is-facing-challenges-it-s/) [Barack Obama](https://sms4smile.com/quotes/author/barack-obama/) > [“Knowledge and skill diffusion is the key to overall productivity growth as well as the reduction of inequality both within and between countries.”](https://sms4smile.com/quotes/thomas-piketty/knowledge-and-skill-diffusion-is-the-key-to-overall-productivity/) [Thomas Piketty](https://sms4smile.com/quotes/author/thomas-piketty/) > [We need to invest in healthcare, in education, in the sciences. And in so doing, we will tackle one of the most intractable problems…](https://sms4smile.com/quotes/naomi-klein/we-need-to-invest-in-healthcare-in-education-in-the-sciences-and-in/) [Naomi Klein](https://sms4smile.com/quotes/author/naomi-klein/) > [Let me put it very forcefully: No large economy has ever recovered from an economic downturn through austerity. It's not going to happen in…](https://sms4smile.com/quotes/joseph-stiglitz/let-me-put-it-very-forcefully-no-large-economy-has-ever-recovered/) [Joseph Stiglitz](https://sms4smile.com/quotes/author/joseph-stiglitz/) > [A lot of my book, 'The Price of Inequality,' is about why there has been an increase in rent-seeking.](https://sms4smile.com/quotes/joseph-stiglitz/a-lot-of-my-book-the-price-of-inequality-is-about-why-there-has-been/) [Joseph Stiglitz](https://sms4smile.com/quotes/author/joseph-stiglitz/) > [High levels of economic inequality lead to imbalances in political power, as those at the top use their economic weight to shape our politics…](https://sms4smile.com/quotes/joseph-stiglitz/high-levels-of-economic-inequality-lead-to-imbalances-in-political/) [Joseph Stiglitz](https://sms4smile.com/quotes/author/joseph-stiglitz/) > [The country that's been most successful at that is Norway. The more typical countries are those in the Middle East where a small group…](https://sms4smile.com/quotes/joseph-stiglitz/the-country-that-s-been-most-successful-at-that-is-norway-the-more/) [Joseph Stiglitz](https://sms4smile.com/quotes/author/joseph-stiglitz/) > [Some people say we have this inequality because some people have been contributing much more to our society, and so it's fair that they…](https://sms4smile.com/quotes/joseph-stiglitz/some-people-say-we-have-this-inequality-because-some-people-have-been/) [Joseph Stiglitz](https://sms4smile.com/quotes/author/joseph-stiglitz/) > [“South of Larissa the landscape began to change. Jude watched an irrigation machine like a giant stick insect creeping over a field, and a…](https://sms4smile.com/quotes/paul-alkazraji/south-of-larissa-the-landscape-began-to-change-jude-watched-an/) [Paul Alkazraji](https://sms4smile.com/quotes/author/paul-alkazraji/) > [I believe that if we are able to, obviously we need to ensure that we have a robust budget that's balanced, but there's no…](https://sms4smile.com/quotes/jagmeet-singh/i-believe-that-if-we-are-able-to-obviously-we-need-to-ensure-that-we/) [Jagmeet Singh](https://sms4smile.com/quotes/author/jagmeet-singh/) > [“It was my good fortune to be linked with Mme. Curie through twenty years of sublime and unclouded friendship. I came to admire her…](https://sms4smile.com/quotes/albert-einstein/it-was-my-good-fortune-to-be-linked-with-mme-curie-through-twenty/) [Albert Einstein](https://sms4smile.com/quotes/author/albert-einstein/) > [Mainstream economic theories popular in the last several decades have tended to downplay the government's role in markets and to increase skepticism about even…](https://sms4smile.com/quotes/mariana-mazzucato/mainstream-economic-theories-popular-in-the-last-several-decades-have/) [Mariana Mazzucato](https://sms4smile.com/quotes/author/mariana-mazzucato/) ## More by Joseph Stiglitz > [I grew up in a family in which political issues were often discussed, and debated intensely.](https://sms4smile.com/quotes/joseph-stiglitz/i-grew-up-in-a-family-in-which-political-issues-were-often-discussed/) [Joseph Stiglitz](https://sms4smile.com/quotes/author/joseph-stiglitz/) > [But individuals and firms spend an enormous amount of resources acquiring information, which affects their beliefs; and actions of others too affect their beliefs.](https://sms4smile.com/quotes/joseph-stiglitz/but-individuals-and-firms-spend-an-enormous-amount-of-resources/) [Joseph Stiglitz](https://sms4smile.com/quotes/author/joseph-stiglitz/) > [China, with its large emerging middle class, is among the big beneficiaries of globalization.](https://sms4smile.com/quotes/joseph-stiglitz/china-with-its-large-emerging-middle-class-is-among-the-big/) [Joseph Stiglitz](https://sms4smile.com/quotes/author/joseph-stiglitz/) > [Trickle-down economics is a myth. Enriching corporations - as the TPP would - will not necessarily help those in the middle, let alone those…](https://sms4smile.com/quotes/joseph-stiglitz/trickle-down-economics-is-a-myth-enriching-corporations-as-the-tpp/) [Joseph Stiglitz](https://sms4smile.com/quotes/author/joseph-stiglitz/) > [Some people say we have this inequality because some people have been contributing much more to our society, and so it's fair that they…](https://sms4smile.com/quotes/joseph-stiglitz/some-people-say-we-have-this-inequality-because-some-people-have-been/) [Joseph Stiglitz](https://sms4smile.com/quotes/author/joseph-stiglitz/) > [It's actually a tribute to the quality of economics teaching that they have persuaded so many generations of students to believe in so much…](https://sms4smile.com/quotes/joseph-stiglitz/it-s-actually-a-tribute-to-the-quality-of-economics-teaching-that/) [Joseph Stiglitz](https://sms4smile.com/quotes/author/joseph-stiglitz/) > [In an economy, when the government spends more and invests in the economy, that money circulates, and recirculates again and again. So not only…](https://sms4smile.com/quotes/joseph-stiglitz/in-an-economy-when-the-government-spends-more-and-invests-in-the/) [Joseph Stiglitz](https://sms4smile.com/quotes/author/joseph-stiglitz/) > [The laws of normal economics dictate that lower taxes combined with increased spending will lead to bigger deficits.](https://sms4smile.com/quotes/joseph-stiglitz/the-laws-of-normal-economics-dictate-that-lower-taxes-combined-with/) [Joseph Stiglitz](https://sms4smile.com/quotes/author/joseph-stiglitz/) > [A less healthy America is not going to be as productive.](https://sms4smile.com/quotes/joseph-stiglitz/a-less-healthy-america-is-not-going-to-be-as-productive/) [Joseph Stiglitz](https://sms4smile.com/quotes/author/joseph-stiglitz/) > [As I noted in my Nobel lecture, an early insight in my work on the economics of information concerned the problem of appropriability -…](https://sms4smile.com/quotes/joseph-stiglitz/as-i-noted-in-my-nobel-lecture-an-early-insight-in-my-work-on-the/) [Joseph Stiglitz](https://sms4smile.com/quotes/author/joseph-stiglitz/) > [We noted the psychological problems facing many of the returning from Iraq veterans - of the 700,000 returning veterans, more than a 100,000 have…](https://sms4smile.com/quotes/joseph-stiglitz/we-noted-the-psychological-problems-facing-many-of-the-returning-from/) [Joseph Stiglitz](https://sms4smile.com/quotes/author/joseph-stiglitz/) > [World War II was really unusual, because America was in the Great Depression before. So the war did help the US economy to get…](https://sms4smile.com/quotes/joseph-stiglitz/world-war-ii-was-really-unusual-because-america-was-in-the-great/) [Joseph Stiglitz](https://sms4smile.com/quotes/author/joseph-stiglitz/) > [Moreover, because we chose to finance the way by borrowing, our deficits and debt has soared, and this means we have less room for…](https://sms4smile.com/quotes/joseph-stiglitz/moreover-because-we-chose-to-finance-the-way-by-borrowing-our/) [Joseph Stiglitz](https://sms4smile.com/quotes/author/joseph-stiglitz/) > [I've always been sceptical about the notion that the market is a person you can engage in an argument with, and that that person…](https://sms4smile.com/quotes/joseph-stiglitz/i-ve-always-been-sceptical-about-the-notion-that-the-market-is-a/) [Joseph Stiglitz](https://sms4smile.com/quotes/author/joseph-stiglitz/) > [The striking thing about America is - it's historically, extraordinary unusual,I don't of any other instance - is that productivity of workers and wages…](https://sms4smile.com/quotes/joseph-stiglitz/the-striking-thing-about-america-is-it-s-historically-extraordinary/) [Joseph Stiglitz](https://sms4smile.com/quotes/author/joseph-stiglitz/) [Explore all 251 Joseph Stiglitz quotes ](https://sms4smile.com/quotes/author/joseph-stiglitz/) ## More Austerity quotes > [Mainstream economic theories popular in the last several decades have tended to downplay the government's role in markets and to increase skepticism about even…](https://sms4smile.com/quotes/mariana-mazzucato/mainstream-economic-theories-popular-in-the-last-several-decades-have/) [Mariana Mazzucato](https://sms4smile.com/quotes/author/mariana-mazzucato/) > [“It was my good fortune to be linked with Mme. Curie through twenty years of sublime and unclouded friendship. I came to admire her…](https://sms4smile.com/quotes/albert-einstein/it-was-my-good-fortune-to-be-linked-with-mme-curie-through-twenty/) [Albert Einstein](https://sms4smile.com/quotes/author/albert-einstein/) > [I believe that if we are able to, obviously we need to ensure that we have a robust budget that's balanced, but there's no…](https://sms4smile.com/quotes/jagmeet-singh/i-believe-that-if-we-are-able-to-obviously-we-need-to-ensure-that-we/) [Jagmeet Singh](https://sms4smile.com/quotes/author/jagmeet-singh/) > [“South of Larissa the landscape began to change. Jude watched an irrigation machine like a giant stick insect creeping over a field, and a…](https://sms4smile.com/quotes/paul-alkazraji/south-of-larissa-the-landscape-began-to-change-jude-watched-an/) [Paul Alkazraji](https://sms4smile.com/quotes/author/paul-alkazraji/) > [Too many politicians seem to reach for 'infrastructure' as the default answer to investment, as if roads and bridges were the answer to everything.…](https://sms4smile.com/quotes/mariana-mazzucato/too-many-politicians-seem-to-reach-for-infrastructure-as-the-default/) [Mariana Mazzucato](https://sms4smile.com/quotes/author/mariana-mazzucato/) > [The flaw in, say, austerity, is that its success is predicated on the relative exactitude of math rather than the shifting, liquid imperfection of…](https://sms4smile.com/quotes/steven-weber/the-flaw-in-say-austerity-is-that-its-success-is-predicated-on-the/) [Steven Weber](https://sms4smile.com/quotes/author/steven-weber/) > [You can be creative only when there is abandonment-which means, really, there is no sense of compulsion, no fear of not being, of not…](https://sms4smile.com/quotes/jiddu-krishnamurti/you-can-be-creative-only-when-there-is-abandonment-which-means-really/) [Jiddu Krishnamurti](https://sms4smile.com/quotes/author/jiddu-krishnamurti/) > [It is opposition to economic orthodoxy that leads us into austerity and cuts. But it is also a thirst for something more communal, more…](https://sms4smile.com/quotes/jeremy-corbyn/it-is-opposition-to-economic-orthodoxy-that-leads-us-into-austerity/) [Jeremy Corbyn](https://sms4smile.com/quotes/author/jeremy-corbyn/) > [When people are running up more and more debt for housing, they call that "real wealth." It exposes what's wrong in the mainstream economics…](https://sms4smile.com/quotes/michael-hudson/when-people-are-running-up-more-and-more-debt-for-housing-they-call/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) > [“If the surprise outcome of the recent UK referendum - on whether to leave or remain in the European Union - teaches us anything,…](https://sms4smile.com/quotes/alex-morritt/if-the-surprise-outcome-of-the-recent-uk-referendum-on-whether-to/) [Alex Morritt](https://sms4smile.com/quotes/author/alex-morritt/) > [The world has conducted a massive macro-economic experiment since the cataclysm of 2008. In Europe, the fans of austerity have had their chance, and…](https://sms4smile.com/quotes/eliot-spitzer/the-world-has-conducted-a-massive-macro-economic-experiment-since-the/) [Eliot Spitzer](https://sms4smile.com/quotes/author/eliot-spitzer/) > [We used to be one of the richest countries in the world, but we are now on a path towards under-development. This austerity that…](https://sms4smile.com/quotes/marine-le-pen/we-used-to-be-one-of-the-richest-countries-in-the-world-but-we-are/) [Marine Le Pen](https://sms4smile.com/quotes/author/marine-le-pen/) > [The emphasis so far on fiscal austerity, while to a degree necessary for the countries facing market funding difficulties, is excessive when carried out…](https://sms4smile.com/quotes/charles-dallara/the-emphasis-so-far-on-fiscal-austerity-while-to-a-degree-necessary/) [Charles Dallara](https://sms4smile.com/quotes/author/charles-dallara/) > [And what if we’d been utterly open? Made jokes about the first wife? What if we’d been that kind of family? Well, I would…](https://sms4smile.com/quotes/sue-miller/and-what-if-we-d-been-utterly-open-made-jokes-about-the-first-wife/) [Sue Miller](https://sms4smile.com/quotes/author/sue-miller/) > [Extreme concupiscence may be found under extreme austerity.](https://sms4smile.com/quotes/margaret-of-valois/extreme-concupiscence-may-be-found-under-extreme-austerity/) [Margaret of Valois](https://sms4smile.com/quotes/author/margaret-of-valois/) [Browse all 194 Austerity quotes ](https://sms4smile.com/quotes/about/austerity/) ```json { "@context": "https://schema.org", "@graph": [ { "@type": "Quotation", "text": "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. 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