The New Gilded Age and its Discontents.

July 3, 2002 9:36 AM

The New Gilded Age and its Discontents. Nobel Prize-winning economist Joseph Stiglitz began explaining why markets fail long before Enron and WorldCom rose, exploded and crashed. But not many people wanted to listen during the boom-boom '90s; Stiglitz was even fired from his position as chief economist at the World Bank after he repeatedly criticized the organization's free-market obsessions.
posted by Ty Webb (8 comments total)

I like Stiglitz, see also this article where he accuses the IMF of being partially responsible for the problems in East Asia's economy.
posted by bobo123 at 10:17 AM on July 3, 2002 [1 favorite]

You mean industrial deregulation isn't the best thing since polyurethane condoms? Corporations actually need guidance and oversight lest they chase the buck to ruthlessly??

When you consider how much beter flying and making telephone calls are now than they were then...who'd of thunk it?
posted by BentPenguin at 10:29 AM on July 3, 2002

I am glad somebody with clout and intelligence is out there who can state succinctly the nebulous concerns I have had about how our economy has been expanding on massively inflated corporations. If the government successfully regulated businesses in the way Stiglitz suggests I wonder if large corporations would simply cease to form. There would be little incentive for individuals within a company to take risks in pursuit of growth, since they wouldn't be able to reap a massive windfall as a result.
posted by plaino at 10:59 AM on July 3, 2002

I'm in favor of the mafia regulating the government, just to keep them on the right track, you know, guide them away from amassing power and money so vociferously.
posted by insomnyuk at 7:30 PM on July 3, 2002

And Ty, I know you're an pro-regulation journalist, but why are so many of your posts about the market vs. regulation debate?

I guess I just answered my own question.
posted by insomnyuk at 7:35 PM on July 3, 2002

Trust me, yuk. I know what Ty's real passions are. Let him stick to the highbrow stuff for all our sakes!
posted by black8 at 7:45 PM on July 3, 2002

And Ty, I know you're an pro-regulation journalist, but why are so many of your posts about the market vs. regulation debate?

Markets vs. regulation is a false contest; there are no markets without regulation. The only question is to what extent they should be regulated and in what areas.

If you're suggesting that I'm preoccupied with market science, then I'm guilty as charged. I certainly don't think that regulation is the answer to all problems, and I do think that markets can, in many instances, efficiently organize themselves, but only within the framework of law that balances out long term social needs versus short term economic ones.

Oh, black8: we still on for tonight?
posted by Ty Webb at 11:38 AM on July 4, 2002

only within the framework of law that balances out long term social needs versus short term economic ones

This is definitely my favourite meme right now. How does one get there, within the bounds of the party political quagmire (ie with the current level of vested interests)?
posted by walrus at 7:21 AM on July 5, 2002