The Book Depository The Great Divide by Joseph Stiglitz
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Description: The Great Divide : Paperback : Penguin Books Ltd : 9780141981222 : : 26 Apr 2016 : Why has inequality increased in the Western world - and what can we do about it? This title argues that inequality is a choice - the cumulative result of unjust policies and misguided priorities. It exposes the inequality that is afflicting America and other Western countries in thrall to neoliberalism. The Book Depository The Great Divide by Joseph Stiglitz - shop the best deal online on thebookbug.co.uk
Category: Books
Merchant: The Book Depository
Product ID: 9780141981222
MPN: 9780141981222
GTIN: 9780141981222
Author: Luc REYNAERT
Rating: 5
Review: In his outstanding book 'The Price of Inequality', J. Stiglitz analyzed brilliantly the detrimental economic impact of huge income and wealth inequality in a country, because it undercuts economic performance, lowers global demand and increases instability. In this book, he explains perfectly the nature, the origin, the causes of the inequality plague and the necessary 'political' solutions to tackle it. Nature There are many growing inequalities in the world, but the root of them all is the income and wealth inequality. Wealth is foremost a question of ownership of stocks of industrial/financial/service companies which generate income and wealth through dividends and share price increases. Wealth inequalities within a population lead to big differences in health care, education, opportunity, justice, exposure to environmental hazards, police protection and in the quality of housing and infrastructure. Importantly, it generates also political inequality : the wealthy few control the political decision making. For the many, through a lack of good education and opportunities it turns the American dream into a Myth. The origin of the growth of inequality The turning point was the Reagan administration, which implemented a deregulation of the financial sector and a reduction in the progressivity of the tax system. Other key moments were the tax cuts for the rich under the Bush administration, which were presented as beneficial for all Americans through the trickle-down effect. But, the 'effect' of this effect proved to be a Myth. Causes : Finance At the heart of the inequality problem lays the increasing financialization of the world's economies. The political clout of the financial sector became all too evident after the banking crisis of 2008: the poor suffered heavily by losing their jobs and their houses, while the responsible bankers, the shareholders and the bondholders of the banks were bailed out. The crisis revealed also a corrupt financial sector : insider trading, manipulation of interest and foreign exchange rates, monopoly power in credit and debit card practices and predatory and discriminatory lending. Causes : Globalization Globalization offers not only the possibility of exploiting tax loopholes ; but it presents also the opportunity to concoct biased trade agreements. Today, those agreements are centered on intellectual property (patents), particularly in the pharmaceutical and entertainment industries. The agreements hamper the marketing of generic drugs, thereby raising the price of medicines. For J. Stiglitz, this illustrate the fact that corporate profits are more important than human lives. One of the most controversial propositions is the creation of an international tribunal, which could decide that national regulations are detrimental to (potential) corporate profits and should be abolished and/or compensate the punitive damages. Causes : Politics and Policies The wealthy are afraid of strong governments, because the latter could use their power to adjust the balance between the rich and the poor. Through campaign contributions, the wealthy few 'buy' policies that bring riches to the few, turning elections into a one dollar/one vote outcome. Real democracy becomes a Myth. Summary : Ersatz capitalism The slogan 'socialism for the rich, free markets for the rest' is perfectly illustrated by the outcome of the banking crisis of 2008: the losses were socialized, while the gains were privatized. In markets with perfect competition profits would be driven to zero. But instead, we see monopolies and oligopolies making persistently high profits. Free markets and free trade are a Myth. Solutions For J. Stiglitz, governments should be made more accountable to all of the people and their interest by creating a fair tax system. That should include banking regulations, a financial transaction tax and antitrust laws. Taxes should encourage good activities (job creation, education, health care), not bad ones (pollution, speculation). Long-term investments should be made in schools and infrastructure and not in weaponry and wars. His own profession J. Stiglitz points his finger at his own profession, the economists. They pretended that markets were self-regulating, another Myth. This outspoken and hard hitting book written by a superb free mind, is a must read for all people of good will.
Author: Amazon Customer
Rating: 3
Review: Mostly a collection of articles, somewhat repetitive on key messages, particularly on inequality.
