With neoliberalism discredited and austerity failed, we need to rewrite the rules of the economy once again. But this time in the right way. We need rules that focus on long-term economic growth, and the only kind of sustainable prosperity is shared prosperity.
Interpretation
Stiglitz argues for a fundamental change in economic rules to promote sustainable and shared prosperity after the failures of neoliberalism and austerity.
In this quote, Joseph Stiglitz emphasizes the need to redefine economic principles following the discrediting of neoliberalism and the failures of austerity measures. He advocates for rules that support long-term growth and prioritize shared prosperity, suggesting that true and sustainable economic success must benefit all segments of society, rather than just a select few.
In practice
This quote can be used in a speech discussing the future of economic policies at a conference.
Free migration within Europe means that countries that have done a better job at reducing unemployment will predictably end up with more than their fair share of refugees. Workers in these countries bear the cost in depressed wages and higher unemployment, while employers benefit from cheaper labor.
I don't think we can have democracies that work where most of the people are not benefiting economically, where most of the people are worried about their job security.
Let me put it very forcefully: No large economy has ever recovered from an economic downturn through austerity. It's not going to happen in the United States, and it's not going to happen in Europe.
What separates developing countries from developed countries is as much a gap in knowledge as a gap in resources.
One of the arguments I make for the failure of the euro is that, at the time it was being constructed, there was a 'neo-liberal' ideology which said that all we need to do to make this thing work is to get deficits low, keep inflation low, and take down barriers, and then everything would be fine.
Trump sees the world in terms of a zero-sum game. In reality, globalisation, if well managed, is a positive-sum force: America gains if its friends and allies - whether Australia, the E.U., or Mexico - are stronger. But Trump's approach threatens to turn it into a negative-sum game: America will lose, too.
I am a huge bull on this country. We will not have a double-dip recession at all. I see our businesses coming back almost across the board.
Fundamentally, there are only two ways of coordinating the economic activities of millions. One is central direction involving the use of coercion - the technique of the army and of the modern totalitarian state. The other is voluntary cooperation of individuals - the technique of the marketplace.
What many economists fail to understand is that poor people are no less concerned about improving their lot and that of their children than rich people are.
Our economy is the result of millions of decisions we all make every day about producing, earning, saving, investing, and spending.
Big companies are reliant on institutional investors on a punishing schedule which leads to ruthless behaviour. This form of capitalism with this structure and incentives will never deliver sustainability.
The welfare of a nation can scarcely be inferred from a measurement of national income as defined by the GDP.
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