?

Log in

No account? Create an account

Previous Entry | Next Entry

Nobel laureate Joseph Stiglitz has been writing about America’s economically divided society since the 1960s. His recent book,The Price of Inequality, argues that this division is holding the country back, a topic he has also explored in recent research supported by the Institute for New Economic Thinking and others. On December 4, Stiglitz chaired the eighth INET Seminar Series at Columbia University, in which he presented a paper, “New Theoretical Perspectives on the Distribution of Income and Wealth Among Individuals.” In the interview that follows, he explores the themes of this paper, the work of Thomas Piketty, and the need for the field of economics — and the country — to come to terms with the growing gulf between haves and have-nots.

Lynn Parramore: You’ve mentioned that economic inequality was the subject of your Ph.D studies. How did you come to be interested in how income and wealth get divided up in society?

Joseph Stiglitz: First, when you grow up as I did in Gary, Indiana, it was sort of prototypical of a divided America. You had lot of people in poverty. We didn’t have the 1 percent, but we had the 5 percent. I had no idea what real inequality was like, but we had a lot of people at the bottom. And second, it goes back to the years I went to college and the Civil Rights Movement. You remember Martin Luther King’s march was a march for the end of discrimination and for economic empowerment. So I think a lot of us realized at that time that we weren’t going to fully address the problems of a divided America — of race discrimination — if we didn’t do something about the economic differentials.

LP: What’s new in your recent work on the distribution of income and wealth among individuals?

There are several things. There’s some debate about this, but I think most readers of Thomas Piketty’s book (Capital in the Twenty-First Century) get the impression that the accumulation of wealth — savings —is responsible for the rise in inequality and that there is, therefore, in a way,a link between the growth of the economy — the accumulation of capital— on the one hand and inequality and wealth. My paper begins with the observation that in fact, you cannot explain what has happened to the wealth/income ratio by that analysis. A closer look at what has gone on suggests that a large fraction of the increase in wealth is an increase in the value of land, not in the amount of capital goods...

Joseph Stiglitz: Thomas Piketty gets income inequality wrong - Salon.com

Latest Month

November 2017
S M T W T F S
   1234
567891011
12131415161718
19202122232425
2627282930  
Powered by LiveJournal.com
Designed by Naoto Kishi