Joseph Stiglitz: It’s Time to Get Radical on Inequality

Given the pace at which things are spinning out of control, within a few short months we may find ourselves in the middle of a deep recession, a stock market meltdown, and a housing crash that'll be unlike anything we've ever seen. All signs suggest that 2023 will be a year of severe economic pain all over the nation. what moves can we make to generate more income because I can’t afford to see my savings of about $320k turn to dust

The idea that it’s the economists role to “make the pie” as big as possible and others responsibility to distribute it, is floored thinking. It takes no account of negative externalities and the need to limit the size of the pie in order to protect the environment and limited resources. Climate change and biodiversity loss have proven this issue is real and it’s time that economists started to include this in their theories. Also, capitalism by it’s nature will lead to increasing inequality as as productivity gains become more difficult, holding down wages becomes the main and ongoing focus driving income and wealth inequality.

Essentially he's saying the same as Piketty. No matter where the rents come from, monopoly, land, ...the gap between the returns on capital and growth will become bigger, and consequently inequality will become bigger.

Well yes... i remember in 2008 when the whole crisis thing went down. Every morning i went to school (commerce/economics) and expected to see the bankers hang and burn-, or at least being beaten and shamed in the streets (i'm from a major banking city in a major banking country that poured A LOT of money into "their" banks), or at the very least being nationalised and potentially tried in court, but nothing ever happened. I'm still not sure, 10 years later, if people even know what happened, that they've been robbed and lied to by their own government. That in essence, they are still the same pawns they have been since the dawn of civilisation, only with iPhones and car loans now. And even more so, it's incredible that now there's all this austerity being imposed on people all over the world while the financial industry received the largest welfare checks in human history... even after they stole the peoples assets and money and land and nearly crashed the whole goddamn system, and the middle class is left to deal with increasing rents, stressful jobs and burnout and fucking fear of being evicted, of being a "failure" and "not making it". Shame on all of you participants, and shame on us for going along with this s**. I only hope it's not too late to turn this around before we descend into the dark ages once more and leave civilised life behind us, for good. F** the bankers. History will remember you for what you are you greedy bastards.

The best mainstream economist, hands down. It was before my time, but I do wonder what, if anything, he and Krugman said during the 90s when inequality was really taking off, good numbers of the economy were still being left behind, deregulation of finance and what not. Maybe he did speak out against it, but yeah...shocking to see an Ivy League Nobel Prize winner say the things he does, really taking a hammer to mainstream econ, and our memes on the wealthy. Granted, I think most of us know the wealthy save a lot, and spend on goods that don't really benefit the US terribly much, but still good to hear.

We do need more radical solutions. I could start by Government’s accepting that their role is to represent everyone, not just the rich. As the video says, trickle down never was a real proven thing, it just justified the rich taking the wealth.

Today's minimum wage of $7.25 or so is lower after adjustment than the 1956 minimum wage of a dollar an hour!

Even economists are afraid of the middle class. The one option that Joseph never mentioned is employing a specific option that supports channelling a remittance to the middle class (the social contract - hear that Republicans.) He spoke of efficiency and investments of the elites but how they have no clue about how to implement that social contract. But he did say no spending means no economy, and the inequality that, that will breed is the existential threat !!!

thank you for posting this....

What Happens when we get all of the information... We quit, we do not feed the machine anymore, we quit participating in the rip off.

I agree with Mr. Stiglitz's analysis of the problem and with his notion that it's time to get radical. I am very disappointed in his discussion of what needs to be done. As Arlin said in an earlier comment Mr. Stiglitz's analysis is based on the ideas of Henry George. So why does he not also present Mr. George's solution, which would be extremely simple and yet fix most of the problem. This is a tax shift off of labour and investment in actual production onto the "rent" ie annualized value of land and natural resources. No-one would be taxed on income based on making stuff or providing services. Companies would have to invest in actually doing their job as capitalists - you know - purchasing or leasing physical capital and hiring labour to provide goods and services.They could not get rich speculating in land values and made-up financial instruments.

12:00 "If you look at the productivity of the real American workers, it's doubled—and the wages have stagnated. So a gap has opened up and you have to explain that. That in my mind is what I call "rents/exploitation", it's taking advantage—it's the rules of the game. And this is really the point: It's not about capitalism in the 21st century, it's the way we've changed the rules of the game to disadvantage ordinary people."

I find it fascinating that the US is recreating exactly the situation in society that their forefathers (and mothers) were running from. The only difference is that belonging to the "upper crust" does not depend on "being noble", but just on how much money you have. But other than that the situation reminds me of Europe between the 14th and 19th century. Lot's of disadvantaged, poor people and a very few at the top. And almost no chance to make it up there for the average people. And I would be curious to know his suggestions on how to take on the underlying and power structures.

Very good, important analysis!

I always enjoy how absolutely beautiful the places are that they use to discuss inequality.

15:00 you can't have an economy if people have no money to spend.

A part of what he is said was told many times before by those who think unbriddled capitalism is a mortal sin.

This supports AOC's Green New Deal beautifully. Stiglitz says here he believes minor changes can no longer be enuf, the power structure must be addressed directly to address toxic inequality.

Yang and Bernie 2020. It's ONLY a start, but the best shot we have without full out revolution/collapse.

16:20 it is time to get radical...inequality has reached a stage where mild tweaking is not going to work.