This makes sense to me; mostly. I don't buy the "we should spend more to reduce the deficit"-notion and I think the interviewers are too opinonated. But what is said by Mr. Stiglitz sounds mostly plausible to me.
But I'm sure there are some nobel prize winning economists, who say the opposite. If somebody got a link, I'd love to watch/read.
Interview starts at 13:00
The article in question.