Joseph Stiglitz: Capitalism Must Be Re-Visited

Nobel laureate in economics and author of “People, Power and Profits” argues that government intervention is necessary.

Joseph Stiglitz was interviewed following his publication of “People, Power, and Profits: Progressive Capitalism for an Age of Discontent” where he argues that capitalism creates wealth inequality and government intervention is necessary to “transition to a postindustrial world”, according to The Economist.

Stiglitz criticized President Reagan’s “trickle-down economics” for slowing economic growth and restricting opportunities. He argued that Republican policies increase inequality while the gap between corporations and ordinary workers widens.

He suggests that “progressive capitalism” would curb the market power of “our 21st century tech and financial behemoths”. Progressive capitalism would require further government investment in technology, education, and infrastructure as well as oversight through checks and balances and an active free press.

Stiglitz additionally pointed out that the political engagement increase in 2018 depicted a growing trend that young people are becoming increasingly aware of the political and economic climate.

In an excerpt from his book, “People, Power, and Profits: Progressive Capitalism for an Age of Discontent”, Stiglitz writes that, “Changes and reforms are necessary to achieve a more dynamic economy, growing faster, an economy that serves people, and not the other way around. Many of the policies are hardly novel—variants of these policies have worked successfully in other countries. It’s not the economics that are difficult. It’s the politics.”

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