The Great Divide (Kindle)
A great read on the subject of ineuality and how politics
and policies are behind the stagnation in real wages of the policies are behind the stagnation in real wages of the class and lower Eye opening and informative on the central thesis of the book that ineuality is not a natural outcome of capitalismsskill biased technological change but is an outcome of our politicspolicies The book is convincing in showing that we can reduce ineuality without compromising economic growth Though two caveats 1 The book is fairly repetitive The central thesis is set out the first 100 pages or so and then the same ideas are used to analyse the impact of different policies in the US The book is fairly US centric as well The ineuality in other parts of the world is cursorially addressed2 Apparently the effort that goes into a full length book is much higher than compiling 50 blog posts into a book And it shows You are essentially reading one blog post after the other in this book Maybe The Price of Ineuality the other Stieglitz book on ineuality is better structured and has depth I bought this book in hope to discover Stiglitz s conjecture on ineuality hoping to do so by reading his latest book His promotion of it on Bloomberg might have precipitated this choice If only I new this would be a mere collection of articles of his most of which are freely available online and an interview Not that the positions he espouses in this book are particularly alien to me I just felt a bit ripped off to buy a book that only contains lots of surface level discussions of such a plethora of issues If you ve read one you ve read them all Stiglitz s the Price of Ineuality did a better job detailing his arguments clearly and succinctly His solutions were also very reasonable and straightforward Here there are or less very similar arguments and the same repetitive rhetoric thrown in with powerful buzz words for effect Imagine an economist who doesn t have his head up his butt That s Stiglitz This is a collection so some of the stuff is from the Bush years Still much of it is classic Stiglitz is an important voice in economics and he is working hard to help non economists understand that capitalism comes in many different varieties depending on the policy decisions made by the people in power where it is practiced This collection of material much of it previously published in a variety of columns and articles in business and policy journals centers on the way capitalism as currently practiced in the United States has moved our economy toward a two tier reality without much room for a benefit to the middle class His main point is that we don t have to abandon capitalism to improve the efficiency and essential fairness of our economy Dr Stiglitz is a very accomplished economist with a decidedly liberal point of view His focus on income ineuality and the necessity of addressing the issue is very timely What I don t understand is his insistence on demonizing those who may not agree with him or believe there are other solutions to the problem In recent articles I ve read it s clear there are some 1%ers and even some of those crass and greedy bankers who agree with his conclusions But Dr Stiglitz s gratuitous demeaning descriptions of those who disagree with him will only make it difficult to resolve the issue and detracts from the positions he is advocating The book is a collection of Stiglitz s writings in popular media My low ratings owe mainly to the repetitiveness of the main themes and arguments in various chapters It gets very boring to read Sectional introductions are written pretty well and reading just them is sufficient in my opinion the chapters don t add much value after the sectional introductions Economy might be a boring subject for the majority of readers however a number of economists have been trying to popularise important debates on economic issues Such arguments have caught the imaginations of several citizens concerned with their economic prospects Joseph E Stiglitz Nobel Laureate and former chief economist of the World Bank has raised serious concerns about the distribution of wealth in the USA in particular and across the world in general in his latest book uite provocatively yet aptly titled The Great Divide It is a compilation of articles written "FOR THE NEW YORK TIMES OVER THE PAST SEVEN " The New York Times over the past seven concept of income ineuality is not a new one However it has long been neglected by mainstream economists an. In The Great Divide Joseph E Stiglitz expands on the diagnosis he offered in his best selling book The Price of Ineuality and suggests ways to counter America’s growing problem With his signature blend of clarity and passion Stiglitz argues that ineuality is a choice the cumulative result of unjust policies and misguided prioritiesGathering his writings for popular outlets including Vanity Fair and the New York Times Stiglitz exposes in full America's ineuality its dimensions its causes and its conseuences for the nation and for the world From Reagan era to the Great Recession and its long aft. .
Joseph E. Stiglitz ´ 9 Summary.
D policymakers Income ineuality refers to the uneven distribution of wealth in a society which results in a widening gulf between the rich and the poor Stiglitz has explained that conservative economists have focused only on increasing the size of the economy or GDP The distribution of wealth was considered a uestion of politics despite having enormous economic implications This is why Stiglitz states that while GDP was growing the incomes of most Americans were stagnating This stagnating income of the middle class meant stagnant demand and that resulted in economic slowdown Therefore according to Stiglitz taxing the rich does not cause an economic slowdown rather stagnating incomes of the middle class cause economic slowdown This is how Stiglitz challenges the basic tenet of trickle down economicsThe failure of market economies to fairly distribute wealth has caused several analysts particularly those on the left of the politico economic spectrum to uestion the very basis of the system ie capitalism On the eve of the global financial crisis that started in 2007 Marx s critiue of capitalism was once again analysed thoroughly in an attempt to find a cure for the ills which haunt our global economic model Such rethinking also gave rise to political agitations such as in the form of the Occupy Wall Street movement The history of capitalism has been marred by successive recessions and a persistent existence of ineuality in the distribution of wealth Stiglitz points out that in the aftermath of the 2008 crisis hundreds of billions went to save the banks and little went to help homeowners What sparked this rebellion on both academic and practical planes were the shocking statistics revealed by economic measures Hence the global rallying for capitalism v20 was not as much ideologically motivated as it was grounded in economic dataStiglitz has backed his arguments with hard facts The average wage of male high school leavers has declined by 12pc in the past 25 years while CEOs salaries have swelled from 30 times the average worker s wage to 300 times The concern is not only limited to the historical comparison of the US s economy it also extends to the decline of these measures in comparison to other global statistics The economic and employment prospects of top performing students from poor families in the US are now lower than those of the weakest performing students from families in the top economic uartile A bus with some 85 billionaires has as much wealth as the bottom Half Of The World S of the world s some three billion peopleComparing the economic performance of USA with China Stiglitz states that China moved some 500 million out of poverty over the same period that stagnation seized America s middle class Further he informs readers that we USA had become the advanced country with the highest level of ineuality and we had among the lowest levels of euality of opportunity Keeping in mind the prevailing politico economic system it was Stiglitz who in a Vanity Fair essay in 2011 coined the catchphrase of the 1pc by the 1pc for the 1pc which aptly encompasses his main contentionsStiglitz has argued that successive governments in the US have not only been complicit in worsening the situation but that through their fiscal and monetary policies they have actively contributed towards it Big businesses large banks and financial regulators have also collaborated with these administrationsStiglitz s efforts to popularise these economic issues did not begin with this book In his 2012 book The Price of Ineuality he introduced concepts such as the 99pc and the 1pc Popular awareness of these issues in Stiglitz s opinion is the first step towards solving them Following this trend a number of books on the subject have been penned by other contemporary economists One such book is Thomas Piketty s Capital in the Twenty First Century a remarkable treatise which became an unlikely bestseller Everyone now understands that a large percentage of wealth is amassed by the elite class and that the gap between rich and poor is widening day by dayStiglitz is not just a doomsday prophet He has along with criticising the current economic policies suggested remedial measures too He vehemently states that widening and deepening ineuality is not driven by immutable economic laws but by laws
we have written ourselves His central message is that any government canhave written ourselves His central message is that any government can the issue of in. Ermath Stiglitz delves into the irresponsible policies deregulation tax cuts and tax breaks for the 1 percent that are leaving many Americans farther and farther beyond and turning the American dream into an ever unachievable myth With formidable yet accessible economic insight he urges us to embrace real solutions increasing taxes on corporations and the wealthy; offering help to the children of the poor; investing in education science and infrastructure; helping out homeowners instead of banks; and most importantly doing to restore the economy to full employment Stiglitz also draws lessons fro.