This video from the USA is called Joseph Stiglitz: “The Price of Inequality: How Today’s Divided Society Endangers our Future”.
By Ben Chu, The Independent daily in the UK:
Joseph Stiglitz: ‘Jail the Bankers’
07 July 2012
Joseph Stiglitz tells Ben Chu that rogue financiers have proven that regulation must get tougher.
Also See Below: Full Transcript of Interview
The Barclays Libor scandal may have shocked the British public, but Joseph Stiglitz saw it coming decades ago. And he’s convinced that jailing bankers is the best way to curb market abuses. A towering genius of economics, Stiglitz wrote a series of papers in the 1970s and 1980s explaining how when some individuals have access to privileged knowledge that others don’t, free markets yield bad outcomes for wider society. That insight (known as the theory of “asymmetric information”) won Stiglitz the Nobel Prize for economics in 2001.
And he has leveraged those credentials relentlessly ever since to batter at the walls of “free market fundamentalism.”
It is a crusade that has taken Stiglitz from Massachusetts Institute of Technology, to the Clinton White House, to the World Bank, to the Occupy Wall Street camp and now, to London, to promote his new book The Price of Inequality.
And kind fortune has engineered it so that Stiglitz’s UK trip has coincided with a perfect example of the repellent consequences of asymmetric information.
When traders working for Barclays rigged the Libor interest rate and flogged toxic financial derivatives – using their privileged position in the financial system to make profits at the expense of their customers – they were unwittingly proving Stiglitz right.
“It’s a textbook illustration,” Stiglitz said. “Where there are these asymmetries a lot of these activities are directed at rent seeking [appropriating resources from someone else rather than creating new wealth]. That was one of my original points. It wasn’t about productivity, it was taking advantage.”
Yet Stiglitz’s interest in the abuses of banks extends beyond the academic. He argues that breaking the economic and political power that has been amassed by the financial sector in recent decades, especially in the US and the UK, is essential if we are to build a more just and prosperous society. The first step, he says, is sending some bankers to jail. “That ought to change. That means legislation. Banks and others have engaged in rent seeking, creating inequality, ripping off other people, and none of them have gone to jail.”
Next, politicians need to stop spending so much time listening to the financial lobby, which, according to Stiglitz, demonstrates its spectacular economic ignorance whenever it claims that curbs on banks’ activities will damage the broader economy.
“How Inequality undermines Economies” by NewsWatch: here.
Related articles
- Stiglitz: Why Economics Matters (ritholtz.com)
- Joseph Stiglitz reviews ‘Keynes’ by Robert Skidelsky – LRB (dralfoldman.com)
- Joseph Stiglitz Sees Bleak Future for America If We Don’t Reverse Inequality (3quarksdaily.com)
- BBC World Service – Exchanges: The Global Economy, Exchanges: The Global Economy, Joseph Stiglitz (dralfoldman.com)
- Nobel winner Stiglitz warns of Ireland’s ‘lost decade’ (irishtimes.com)
- Krugman and Stiglitz: Our Most Widely Ignored Public Intellectuals (economistsview.typepad.com)
- Joseph Stiglitz on Global Poverty and the World Bank Financial Services Committee (2007) (financearmageddon.blogspot.com)
- Here’s The Thing: Joseph Stiglitz (ritholtz.com)
Pingback: Spanish miners fight on | Dear Kitty. Some blog
Pingback: Barclays fraud bank’s boss gets millions | Dear Kitty. Some blog
Pingback: New London history book | Dear Kitty. Some blog
Reblogged this on NonviolentConflict.
LikeLike
Pingback: Jail criminal bankers, Internet petition | Dear Kitty. Some blog
Pingback: Tony Blair defends fraudulent bankers | Dear Kitty. Some blog
Pingback: HSBC banksters want to kick out Occupy Hong Kong | Dear Kitty. Some blog
Pingback: Occupy Wall Street anniversary, David Rovics song | Dear Kitty. Some blog
Pingback: HSBC bank in new crime scandal | Dear Kitty. Some blog
Pingback: Spanish police would like to arrest bankers | Dear Kitty. Some blog
Pingback: Libor banking scandal continues | Dear Kitty. Some blog
Pingback: Bankers’ arrogance at Davos forum | Dear Kitty. Some blog
Pingback: Irish workers demonstrate against austerity | Dear Kitty. Some blog
Pingback: Icelandic banksters jailed | Dear Kitty. Some blog
Pingback: European elections, new and improved exit poll | Dear Kitty. Some blog
Pingback: Economic crisis, new book | Dear Kitty. Some blog
Pingback: British police violence against pensioners, disabled people | Dear Kitty. Some blog
Pingback: Not again Australian, US soldiers to Iraq | Dear Kitty. Some blog
Pingback: Capitalist crisis ‘causing war’, pro-capitalists admit | Dear Kitty. Some blog
Pingback: Margaret Thatcher, chemical weapons and economic crisis | Dear Kitty. Some blog
Pingback: Becoming a Companion of the British Empire for ruining the Greek economy | Dear Kitty. Some blog
Pingback: Gulliver’s HSBC money’s travels to Switzerland | Dear Kitty. Some blog
Pingback: £7.6 million travels to British HSBC bank’s Gulliver | Dear Kitty. Some blog
Pingback: More inequality than ever in rich countries | Dear Kitty. Some blog
Pingback: Greeks, vote No to European Union austerity, economist Stiglitz says | Dear Kitty. Some blog
Pingback: Berlin people against German government’s anti-Greek policies | Dear Kitty. Some blog
Pingback: Economist Piketty and inequality discussed in new book | Dear Kitty. Some blog
Pingback: Hillary Clinton’s foundation money from criminal banksters | Dear Kitty. Some blog
Pingback: Hillary Clinton, Democratic convention, war and TPP | Dear Kitty. Some blog
Pingback: British poet Attila the Stockbroker’s diary | Dear Kitty. Some blog
Pingback: Civil liberties threatened in the USA, report | Dear Kitty. Some blog
Pingback: European Union bigwig Barroso’s Goldman Sachs scandal gets bigger | Dear Kitty. Some blog
Pingback: The Pentagon’s endless trillion dollar wars | Dear Kitty. Some blog
Pingback: Banking and crime in Britain | Dear Kitty. Some blog
Pingback: Big Pharma monopolies cause unnecessary coronavirus deaths | Dear Kitty. Some blog