The Price of Inequality

How Today's Divided Society Endangers Our Future

By: Joseph E. Stiglitz

Narrated by: Paul Boehmer

The top 1 percent of Americans control 40 percent of the nation's wealth. And, as Joseph E. Stiglitz explains, while those at the top enjoy the best health care, education, and benefits of wealth, they fail to realize that "their fate is bound up with how the other 99 percent live."

Stiglitz draws on his deep understanding of economics to show that growing inequality is not inevitable: moneyed interests compound their wealth by stifling true, dynamic capitalism. They have made America the most unequal advanced industrial country while crippling growth, trampling on the rule of law, and undermining democracy. The result: a divided society that cannot tackle its most pressing problems. With characteristic insight, Stiglitz examines our current state, then teases out its implications for democracy, for monetary and budgetary policy, and for globalization. He closes with a plan for a more just and prosperous future.

©2012 Joseph E. Stiglitz (P)2012 Tantor

One side is never enough....

There is a fundamental question about inequality this book fails to address. How much inequality is the right amount? Clearly some inequality is both unavoidable and necessary for innovation. This book seems to take the position that the amount of inequality we have now is way too much, but does not propose a goal equality level. I agree that inequality is a bit high, and is getting higher as corporations and the very rich are no longer paying a fair share mostly using loopholes. Nevertheless, I find many of the author’s proposed solutions way over the crazy line. Extending unemployment payments for long periods (do you know people holding off getting a job just in case unemployment is extended again; I do), increasing federal taxes on families earning more than $270K to 70% (history shows this will not work). Stopping investments in productivity (the author phrased it as not investing in labor saving instead invest only in resource saving). Matching the savings of the poor (such policies would be played and end up counter-productive).

It seems the author thinks poor people who were “exploited” by being given homes and a mortgages for which they should never have qualified should now get their mortgages restructured into something they can afford.

The author rages against monopoly powers and do nothing exploiters like Steve Jobs. I found these arguments very poorly supported.

My favorite line was if we follow the author’s recommendations “many more people will have a shot of one day being in the 1%”. Of course, the top 1% will always be 1%. So to increase the 1% we would need to do a 15 minutes of richness kind of deal. The author also mentions education and legal reform without stating any real proposals.

I did agree with the author on a few things. I am also a strong supporter of the estate tax (I think it should be called the slutty heiress tax, not a death tax) and I strongly agree that existing tax loopholes, earmarks, and pork are out of control and related to unsustainable growth in inequality. I never like one sided books that use one side of statistics to make a point (especially when they are making a point I agree with)!

Good explanation

Explains difference between the Chicago School and his evaluation. Very valuable. It is a good read.

Great Book!

What made the experience of listening to The Price of Inequality the most enjoyable?

A thorough and thoughtful analysis of the social and economic forces shaping the plight of millions. Engaging, informative and relevant.

What do you think the narrator could have done better?

Unfortunately, the narrator reads as if standing in front of economically ignorant highschool freshmen. How about trying to read to adults for a change!

An economic book that is meant to be read by all.

The widening economic gap between the top 1% and the bottom 99% can be felt not just in America but also around the world.
Stiglitz' analysis of inequality that is made worse by rent-seeking, restricted social mobility and erroneous macroeconomic policies are enlightening.
I'm not an economics practitioner, but I greatly appreciate this Stiglitz' masterpiece.

The Cost of Corruption

Stiglitz lays out the facts behind the "too big to fail" financial corporations' misdeeds leading up to the 2008 Great Recession and how the US Federal government caters to big business over common citizens. There are many more excellent points covering the unfairness of corporate welfare and tax breaks, amounting to subsidizing big business with no guarantee of benefits to society or the public good. The author lays out solutions that unfortunately sound idealistic in today's fractured USA. Given the stark realities that Stiglitz describes, it is highly ironic to hear people yelp about "socialism" while at the same time they are being screwed. Reading this book might just change the tune of their tweets.