Brief

<p>Offering insightful reference to historical economics, Prof. Joseph Stiglitz of Columbia University outlined his work on the core economic problem of the modern world. Throughout the session, Prof. Stiglitz considered major factors contributing to the rise in inequality and its consequences using examples from the American economy. With its detrimental social, political and economic effects, Prof. Stiglitz asserted the urgency to address the increase in inequality globally.</p> <p>Prof. Stiglitz asserted the spillover effects of wealth inequality, with particular emphasis on class and social differences that arise as a consequence. He stated that there is a cyclical effect in class differences which cause deficits in investment, and therefore lower access to education, healthcare and infrastructure. He exemplifies this through labor immobility, where it is difficult for relatively unskilled workers such as truck drivers to move between jobs. Furthermore, he stated how the &ldquo;rules of corporate governance changed&rdquo;, where economists disprove trickle-down economics because elitists use the liberal market to accumulate wealth rather than invest. Using statistics on net investment going into companies than out as an example, he asserted the failure of the current economic model. Lastly, Prof. Stiglitz noted the difficulty in recovering from current systems in the wake of &ldquo;alternative facts&rdquo;. For example, the Obama administration stated after the 2008 economic crisis the American economy recovered, but Prof. Stiglitz noted: &ldquo;the bottom 99%&rdquo; of wage earners remained to suffer while only the elite recovered.&rdquo; Despite these challenges, several points made considered how the international community can reduce inequality: good governance in fair income distribution, equal opportunities, and consensus on knowledge.</p> <p>Speaking of the &ldquo;Fourth Industrial Revolution&rdquo;, Prof. Stiglitz stated he is unsure where it is headed, because there is no &ldquo;one size fits all&rdquo; policy on how countries can move forward; every country has its own &ldquo;third solution&rdquo; incorporating different ideas. However, he emphasized the need for a collaborative initiative and was optimistic about a global effort to enforce policies in areas such as climate change, income inequality, and trade based on consensus of facts and knowledge.</p> <p>&nbsp;</p>

Speakers

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