The Post-Crisis Crises

Caught up with many pesky invented crises, the US and Europe are neglecting pressing long-term problems. The most serious is the failure to address global climate change, argues Joseph Stiglitz for Project Syndicate. He notes that every delay will require sharper reductions from future generations. Stiglitz argues that “retrofitting the global economy for climate change would help to restore aggregate demand and growth” and adds that “the pace of technological progress and globalization necessitates rapid structural changes in both developed and developing countries alike.” The trends in technology and globalization contribute to long-term crises including global trade imbalances, rising unemployment and inequality, and the need to invest in education as economies shift from manufacturing to services. Developing countries confront a choice, whether to promote individual consumer wealth or collectively invest in health and education with long-term social benefits. Many economies need structural changes, and those will disrupt financial markets, but the changes that contribute to sustainability will instill greater certainty. – YaleGlobal