End of Neoliberalism: Project Syndicate

Neoliberal policies and unfettered markets undermined democracy for 40 years, destroying hopes of economic growth and the spread of democracy. “The effects of capital-market liberalization were particularly odious: If a leading presidential candidate in an emerging market lost favor with Wall Street, the banks would pull their money out of the country,” explains Joseph Stiglitz for Project Syndicate. “Voters then faced a stark choice: Give in to Wall Street or face a severe financial crisis. It was as if Wall Street had more political power than the country’s citizens.” Competition was the priority, as neoliberals cautioned citizens against social programs, progressive taxation or financial regulations. Governments enacted austerity programs instead, and economic growth has slowed, economic confidence is down, wages are stagnant while the stock market rises and wealth has become more concentrated. Angry populism is the result. Stiglitz concludes that a new Enlightenment period is required with commitment to freedom and democracy with respect for knowledge. – YaleGlobal

End of Neoliberalism: Project Syndicate

Neoliberal policies promised faster economic growth with benefits trickling down to all – evidence suggests otherwise, and confidence in democracy has plummeted
Joseph Stiglitz
Thursday, November 7, 2019

Read the article from Project Syndicate about governments worldwide failing to deliver economic growth and control rising inequality.

Joseph E. Stiglitz, University Professor at Columbia University, is the co-winner of the 2001 Nobel Memorial Prize, former chairman of the President’s Council of Economic Advisers, and former Chief Economist of the World Bank. His most recent book is People, Power, and Profits: Progressive Capitalism for an Age of Discontent.

 	Top 10% share of income Europe	37% China	41% Russia	46% US-Canada	47% Sub-Sahara Africa	54% Brazil	55% India	55% Middle East 	61%

Lopsided economy? Income inequality is increasing worldwide, but the pace varies; the top 10 percent earn 37 percent of the national income in Europe and more than 60 percent in the Middle East (Source: World Inequality Report, 2018)

© Project Syndicate - 2019