Summary of Joseph E. Stiglitz's People, Power, and Profits

Everest Media

Description

Please note: This is a companion version & not the original book.
Sample Book Insights:
#1 The United States has a very small elite that controls an increasing share of the economy, and a large and increasing bottom that has almost no resources. The three richest Americans are worth more than the bottom half of the US population combined.
#2 The sources of America’s wealth are the productivity, creativity, and vitality of its people, the advances of science and technology, and the rule of law. These have been the basis of the country’s increases in standards of living over the past two centuries.
#3 We must understand the power of the ideas and interests that have taken us so far off course for the past four decades. We can’t simply describe the economic and political trajectory that our society has taken; we must understand why it has failed us.
#4 The true wealth of a nation is measured by its capacity to deliver high standards of living for all its citizens. This is done through sustained productivity increases, based partly on investments in plants and equipment, but most importantly, in knowledge.

Sujets

• Macroeconomics
• Economics

Informations

• Publié par: Everest Media LLC
• Date de parution: 25 mars 2022
• Nombre de lectures: 0
• EAN13: 9781669366553
• Langue: English
• Poids de l'ouvrage: 1 Mo

Extrait

Insights on Joseph E. Stiglitz's People, Power, and Profits
Contents Insights from Chapter 1 Insights from Chapter 2
Insights from Chapter 1

#1

The United States has a very small elite that controls an increasing share of the economy, and a large and increasing bottom that has almost no resources. The three richest Americans are worth more than the bottom half of the US population combined.

#2

The sources of America’s wealth are the productivity, creativity, and vitality of its people, the advances of science and technology, and the rule of law. These have been the basis of the country’s increases in standards of living over the past two centuries.

#3

We must understand the power of the ideas and interests that have taken us so far off course for the past four decades. We can’t simply describe the economic and political trajectory that our society has taken; we must understand why it has failed us.

#4

The true wealth of a nation is measured by its capacity to deliver high standards of living for all its citizens. This is done through sustained productivity increases, based partly on investments in plants and equipment, but most importantly, in knowledge.

#5

The questioning of authority led to a new epistemology, which governed all aspects of life aside from the spiritual world. With systems of good governance in place, it is more likely that good and fair decisions are made.

#6

The advances in technology and science, as well as changes in social, political, and economic organization associated with the Enlightenment, led to output increases that outpaced increases in population. Society learned how to curb population growth, and in advanced countries, people began to limit family size.

#7

The market and political institutions that were established in the eighteenth century did not always move forward smoothly. There were episodic economic crises, the worst being the Great Depression beginning in 1929, from which the US did not fully recover until World War II.

#8

The Enlightenment promoted tolerance and liberalism, but some of its findings, like evolution, went against the religious conservatives’ beliefs. The business community, which benefited from these findings, supported the Enlightenment, but also supported Trump’s attacks on the Enlightenment’s institutions.

#9

The attacks on our universities are as dangerous for the future of our economy and democracy as the attacks on the media. Our universities are the wellspring from which all else comes.

#10

The task of the courts in any society is to determine the truth, as far as possible. In America, this has often been difficult, as Trump dislikes, and often calls into question, the courts’ decisions.

#11

Truth-telling institutions, such as the media, are dangerous to Trump and his supporters because they may come to conclusions that contradict the prejudices of Trump and his party.

#12

One might ask why Americans are so tolerant of high levels of inequality, given the country’s history of growth and advancement due to the contributions of institutions and ideas such as democracy, free speech, and free markets.

#13

Money has contaminated America’s politics, and it has contaminated beliefs more generally. The rich have apparently persuaded a large fraction of Americans that the country would be better off without an inheritance tax, even though that would lead to an inherited plutocracy.

#14

The elites had promised that lowering taxes on the rich, globalization, and financial market liberalization would lead to faster and more stable growth, but that was not the case. So when Trump labeled it rigged, it resonated with a lot of people.

#15

There is a long-standing theory that the economy will perform best if things are left to free markets. However, this theory does not take into account the fact that markets often don’t work well.

#16

The first step to answering the question of whether markets should be left to themselves is to recognize that markets are not an end in themselves, but a means to a more prosperous society.

#17

Reagan-style supply-side policies, which were based on the assumption that deregulation would free up the economy, lower taxes would incentivize it, and the two would lead to economic growth, failed to deliver on their promises.

#18

Many conservatives are horrified by Trump’s attacks on norms and institutions, and they see his presidency as a distraction from the country’s real problems.

#19

The current economic system is not supported by the majority of Americans, and this has led to the development of a three-part strategy by the super-rich: deception, disenfranchisement, and disempowerment.

#20

The American economy has many flaws, and it is not just the developing world that is turning away from it. America’s standing in the world has taken a major hit due to the 2008 financial crisis, and now, the rise of Trump.

#21

The kind of market economy that America has created has resulted in selfish and materialistic individuals, who often differ from the kinds of ideals we hold up for ourselves and for others.

#22

There is an alternative way forward, and it is presented in this book. It is not based on the market fundamentalist belief in markets and trickle-down economics, but on the international rule of law and globalization.

#23

The economy has slowed down, and the growth in incomes has slowed or even declined since around 1980. This has been happening almost without our realizing it.

#24

The previous chapter showed that the source of a nation’s wealth is not what makes it profitable, but rather what makes it sustainable. Too many people have been seduced into thinking that what is profitable is necessarily what is good, when in fact profits can be generated through exploitation rather than wealth creation.

#25