Myths
For Stiglitz, the US is no longer the country of choice for equal opportunities for everyone.
The theory that everyone (jusquaux poorest) benefit policy dune where lon gives money to the rich (the effect of spin) is an illusion; instead, you have to give money to the poor, because by increasing their purchasing power, everyone will benefit.
The free market does not exist; it is handled thoroughly. A system of free markets is not self-correcting, but basically unstable.
Finally, it is impossible to manage national economies only by monetary policy.
Paths to Power
The 1 percent have amassed their fortunes by annuities, by monopolies and government gifts (tax refunds, grants, donations).
They dominate the democratic political system lintermédiaire of their contributions for election campaigns (one dollar = one vote). By controlling the government, they can manipulate the basic rules of the socio-economic game (laws, regulations, institutional and judicial procedures) to their own advantage.
In addition, they control the information channels through their media conglomerates.
Political and economic failures
For Stiglitz, recent US governments have failed to improve the living standards of the vast majority of the population. Instead, they created a nation with a poor education system, poor banking regulation, and above all, a very high unemployment. Generally, they have set up a company that fundamentally lack of fairness and justice, where everything is allowed and where no one is responsible. Purely examples, those who have recently pushed the global economy to the brink, not even were punished. Instead, they received money packets.
In addition, the US economy is very inefficient: huge needs (infrastructure, schools) are not met and vast resources (workers, machines) underutilized. Economic growth and productivity suffer very seriously.
Government budgets are poorly distributed: grotesque and unnecessary military expenditures contrast with those in léducation, which generates a lack of skilled labor. Monstrous amounts of money were pumped into banks (and in the pockets of their shareholders), who were virtually bankrupt, but the owners who had difficulties in repaying their loans, Nont not received a round.
Remedies
The first and main objective of all national and international economic policies should be full employment.
To reduce the budget deficits, it is simply darrêter ongoing wars and reduce military spending.
Taxation should be much fairer and progressive.
Donations (and subsidies) to private interests should be stopped immediately and pharmaceutical products should be sold at prices affordable to everyone.
Even with its devastating indictment, Stiglitz remains optimistic that a political reform program can (still) be under construction in the future.
This economic lesson with real punches should be read by all men and all women of good will.
