VENGEFUL IDEALIST

Books of Interest
 Website: chetyarbrough.blog

People, Power, and Profits (Progressive Capitalism for an Age of Discontent)

By: Joseph E. Stiglitz

Narrated By: Sean Runnette

With reservation, Joseph Stiglitz’s book “People, Power, and Profits” is reviewed here. The reservation is because of the risk of succumbing to echo-chamber’ belief. That belief is that corporations and wealthy individuals should not be able to pour as much money as they want into the American election process, that bankers unjustly escaped punishment for the 2008 financial crises, and that Donald Trump should never again be elected President of the United States.

Stiglitz is considered a “New Keynesian” economist which puts him at odds with famous economists like Milton Friedman and Friedrich Hayek. Friedman believes the most effective fiscal policies comes from monetary policy control by the government. Hayek believed in a market economy with as little government intervention as possible. Stiglitz flatly disagrees with Hayek and only agrees with Friedman in that government has a responsibility to intervene in government economic policy. Stiglitz identity as a “New” Keynesian is because, unlike Keynes’ economic theory, there is no waiting for an economic crisis for government to intervene but to intervene now to make future economic crises less likely.

Why I am concerned about listening to Stiglitz’s book about the economy is that I am listening to some things I already believe. I believe the gap between rich, and poor is the greatest threat to, not only American democracy, but all forms of government. Stiglitz may be my echo chamber.

Stiglitz has an idealist platform to cure what he views as the solution to narrowing the gap between rich and poor in America. Stiglitz makes five policy recommendations to reduce the gap between rich and poor in America.

1. Increase taxes on income from capital gains and inheritance.
2. Use tax revenues to improve public education in ways that equalize costs between the rich and poor.
3. Refine anti-trust laws to prevent monopolies and promote competition.
4. Intervene in corporate governance to ensure fairer compensation between management and labor.
5. Regulate banks to prevent exploitation of the public.

However, that process is unfairly biased by allowing corporations and the wealthy to pour disproportionate amounts of money into the American election process. Contribution by corporations and the wealthy should be limited because candidates are beholding to big financial donors with little concern for the poor.

The problem with Stiglitz’s book is not in his recommendations but in his vengeful angel’ rhetoric. America is founded on freedom, not revenge. It is the give and take of differences of opinion and “checks and balances” of the Constitution that have made America great. Many mistakes have been made and are still being made by our government but even a horrible President like Trump cannot change the fundamental direction of our democracy.

The gap between rich and poor in America must be resolved. Neither Harris nor Stiglitz may be the answer, but Trump is only going to try to resurrect a past that has led our government in the wrong direction. The unconscionable cost of medical services and drugs, extraordinary compensation for executives, regressive taxes, election financing bias, and financial industry greed must be addressed through the American political process.

American democracy’s failures will not be cured, but they must be addressed and ameliorated to remain a beacon for freedom in the world. The election results are in, and Trump is our President once again. This is a sad commentary on the will of the American people and the threat America is to world economic comity.