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Street roots, O ct. 12, 2012 -, Ninety- nine percent solution Professor Joseph Stiglitz, author and Nobel Prize winner in economics, is pleased to see that his latest book 'The Price o f Inequality’ is already grabbing the attention o f world leaders. BY MIKE REILLY C O N T R IB U T IN G C O L U M N IS T he work of Joseph Stiglitz, a professor In “The Price of Inequality,” Stiglitz which it was founded” he writes. But, he at Columbia University in New York stacks fact after fact, study after study and cautions: “time is running out.” and former chief economist for the Some of Stiglitz’s past books, especially World Bank, is recognized worldwide. He pages of footnotes in an unassailable indictment of the governments and on globalization, are worldwide teaching aids has written a long string of books, policymakers who have let this happen. And today. Asked whether he believes his 2012 numerous papers and he says this threatens destabilization of the call for action by Americans on inequality is a wide variety of world’s leading economy, with an having an effect, he replied: “I think I have essays and articles, S M Si TSE M li ÏS S £ 3 8 S » accompanying ripple effect. “As our reached many audiences. Among the many focusing on economic system is seen to fail for most foremost are those in economic policy equilibrium in the citizens, and as our political system seems making, who are thinking about where the world. In 2001, he to be captured by moneyed interests, society is going. Then there are people who shared a Nobel Prize confidence in our democracy and in our I would call the progressives in society and in Economics for his market economy will erode along with our who want to know what solutions there may work on the effect of global influence.” be. I think I have reached those two groups, unbalanced lit O B O It is both scary and sad reading, the sort particularly the second - rallying the ones information amongst of fact-based narrative that evokes rage and who have a sense that the society is unfair market players. a sickening feeling in one’s belly. Stiglitz has and unequal.” Essentially, he showed a gift for making “A third group, that in a transaction people with more complex economic and I think I reach information about something will benefit matters much easier that group, is the over those with less. to grasp than the people who are In his new book, he looks at wealthier daily flow of people and lays out a the case that they are ""The hope Is that people w ill uncommitted voters information through — not sure what is wrong when they think they are protected rise up, seeing that social and traditional wrong and what to from the effects of inequality. Moreover, media. Taking the Inequality Is so strongly In do. They are trying they have are having an impact on society 30,000-foot view, to assess the that wrenches it from its moral moorings - place. II you look at the coupled with a arguments. I think I a move that threatens their world as much h istorica l situation yon can staggering depth of reached that group. as everyone else’s. see action is re q iilre d /F statistical support, he That is becoming “The evidence from history and from paints an image that — J O S E F H S T IG L IT Z much more the around the modern world is unequivocal,” E C O N O M IS T A U T H O R is already getting the centrist position — he writes. “There comes a point when attention of policy that inequality is bad inequality spirals into economic dysfunction makers just weeks for society and bad, for the whole society, and when it does, after the book’s too, for the even the rich pay a steep price.” publication. economy.” Inequality has been around for centuries. Inequality has risen like a 1,000-year wave “There comes a point when inequality But the stark vision of the huge gap that on everyone’s radar. Indeed, a special report spirals into economic dysfunction for the exists today has shocked the world. In the on it in New Scientist on July 30 echoes whole society, and when it does, even the United States, Stiglitz said in an interview in Stiglitz’s timely concern, looking at some of rich pay a steep price.” July, “20 percent of all income has gone to the science involved in inequality, even Coming as it does in an election year for the top 1 percent. Data for the U .S . showed showing its effect on our health and well the United States, Stiglitz’s warning about dramatically that the wealth of the typical being. “The policy implications seem inequality and its erosive effect sets a American was wiped out. For two decades obvious, if politically contentious,” New special focus for leading American most Americans have seen no increase in Scientist says. “A more even distribution of politicians who have fired up both the their well being — all the increase has gone wealth would improve health on national and rightwing Tea Party and the Left - each of to the top.” global scales. But that appears unlikely to which, for different reasons, criticize the The Occupy Movement adopted the happen without a radical shift in western political lack of action on jobs, housing and phrase “the 99 percent” to identify everyone culture; in recent times governments of all the out-sized wealth of the top 1 percent. including the middle class as suffering while political persuasions have presided over But it does more than anger people. the top one 1 percent grab more and more growing inequality.” “One of the things that disturb me is that of the economic pie. Just what Stiglitz points out in his book, the disillusionment people have with the “The argument in the book is helping the which keeps a laser focus on what is current situation leads to having a variety of 99 percent to find out what can be done at happening in the United States: “I believe it interpretations,” Stiglitz says. “Just like in the same time that it helps the 1 percent is still not too late for this country to change Europe, there is movement to extreme see that it won’t work for them,” Stiglitz course, and to recover the fundamental groups, both on the left and the right.” says.” principles of fairness and opportunity on “The Tea Party movement is in some T EQUALITY P H O T O : R E U T E R S /A R N D W I E G M A N N sense a reaction to the failure of the establishment. While the analysis is right, they are wrong in the diagnosis: ‘The government saved the bankers; therefore the government can’t be trusted.’ But they miss the point; it is an incoherent reaction to the failures.” Government can and does help people through national health programs, infrastructure support and in many other ways, he notes. What needs to happen is that people must act to change the way government operates, not try to obliterate it. “What we are seeing is a sense of anger at the way the system works. Very large sections of the populace feel it is unfair. There is a real concern about the disillusionment. There is a sense that people are suffering disempowerment. They think the system is rigged and they can’t change it.” That simply is not the case, says Stiglitz. “The book tries to isolate what I would call the ‘right corporatists.’ This is the establishment’s right center, the bankers and others, who don’t really believe they are wrong, who are happy to get the bailouts and tax preferences.” But, Stiglitz warns: “There is a lot more in common between right and left and progressives than they realize.” “One theme of the book is that there is a nexus between politics and economics and we have gone down the road to allow the 1 percent to gain more control. We have to break into that vicious circle,” he continued. It is still the case that the 99 percent are the majority. There are two ways change will occur. One, the 99 percent will realize they have been sold a bill of goods, and two, the 1 percent will come to understand that their argument is not true (that they deserve what they get and that righting the imbalance will have a negative impact on society). The hope is that people will rise up, seeing that inequality is so strongly in place, Stiglitz said. “There is no guarantee, but I think if you look at the historical situation you can see action is required.” Exclusive interview fo r the International Network o f Street Papers. Street News Service.
