The Institute Blog

Video: Joseph Stiglitz on How America As Land of Opportunity Has Vanished

The havoc wrought by our recent global financial crisis has vividly demonstrated the deficiencies in our outdated economic theories and shown the need for new economic thinking. Inequality has been one of the key gaps in orthodox economics, and it is one of the areas INET has targeted for new economic thinking to make an impact.

This INET-produced interview features Joseph Stiglitz describing the enormous amount of wealth controlled by the top one percent in America. Here is an exclusive preview of the Stiglitz short interview – for the full interview visit Vanity Fair:

 

 

The forthcoming income inequality mini-documentary is part of an INET series of short films that focuses on important areas of economic exploration. In the film series, leading scholars and economic thinkers such as Stiglitz, John Kay, Steve Keen, Stephen Kinsella, Dirk Bezemer, David Weinstein, and journalist Gillian Tett explain why economics has failed to capture the real, volatile nature of financial markets.

Click here to watch the full interview at Vanity Fair

Comments

0

A respected expert expressing the obvious...comme toujours!

0

Of course, any land which imposes higher capital requirements on banks for those perceived as risky, than for those perceived as not-risky cannot, by definition, be a land of opportunity… as opportunity is all about giving the risky and risk itself a chance. What has become of the “land of the brave”

These bank regulations, which constitute a wedge between the risky, the not haves and the not risky, the haves, is one of the biggest driver of inequality, but Professor Stiglitz has not concerned himself with that… perhaps because he is just another baby boomer affected by the après moi le deluge syndrome.

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@Per Kurowski - The financial crash occurred because the real risk was concealed from investors. The people talking the risks were doing it with the money of people who were't informed about the risk. I have no problem with risk taking....but the critical point surely must be that the people taking the risks are the same people who 'own' the money being risked. This most definitely was NOT the case.

I'm surprised you've missed this point as it is central the financial events of the past 15 years....and Stliglitz is well aware of it.

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Amen to Steve Withers' comment. The financial markets have gotten very clever at 'sharing' risk to the point that those responsible for taking it get the benefit if they win, but can shed much of the loss if they don't. See
http://www.amazon.co.uk/The-Malign-Hand-Markets-ebook/dp/B00885RMG4/ref=...
for many of the gory details.

0

Bravo Withers! You are absolutely right. Putting someone else's skin in the game, without their knowledge, is not an act of risk-taking bravery.

0

Isn't that, in fact, how most corporate executives operate? Asymetric compensation, golden parachutes, even when the shareholders are decimated? It would seem that most of American corporate senior management knows nothing of true personal risk.

0

Steve, nailed it. (and nice to see you ;) )

Normally when you gamble with other people's money and lose, they come looking for a kneecap.

In the current 'financial market', the 'loser' comes looking for the people whose money was lost to make amends for the money they didn't earn.

Something needs to change.

0

I recently finished to read "The price of inequality". In 99% it is written like about my Country. Post socialist countries can't avoid to rich after 20 years development the same deadlock. Instead of developed countries, such situation in young democracies usually finished with revolutions or big unrest. It is needed to be found break in the deadlock. We need to work with new ideas and extraordinary solutions, because we don't have centuries to go to the "classical way". I found very helpful all basic conclusions in the book to argue with our local decision makers, because in "America they trust" blindly.

"Georgia in my mind", Tbilisi, Georgia

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