Getting Economic Policy Exactly Wrong
I’ve blogged on the writings of Nobel Prize winner Joseph Stiglitz before (here and here). He writes with such a simple elegance and so precisely diagnoses the current economic problem that it is worth doing so over and over again.
I was among those who hoped that, somehow, the financial crisis would teach Americans (and others) a lesson about the need for greater equality, stronger regulation, and a better balance between the market and government. Alas, that has not been the case. On the contrary, a resurgence of right-wing economics, driven, as always, by ideology and special interests, once again threatens the global economy – or at least the economies of Europe and America, where these ideas continue to flourish.
And the result:
Do we really need another costly experiment with ideas that have failed repeatedly? We shouldn’t, but increasingly it appears that we will have to endure another one nonetheless. A failure of either Europe or the US to return to robust growth would be bad for the global economy. A failure in both would be disastrous – even if the major emerging-market countries have attained self-sustaining growth. Unfortunately, unless wiser heads prevail, that is the way the world is heading.
We can’t say we haven’t been warned. By Stiglitz or by recent history.Click here for reuse options!
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