This book was recommended to me by an Italian niece, a brilliant mathematician, who works at a university, guiding doctoral candidates in writing their economic theses. She said, “Joseph Stiglitz is my hero.”

Joseph Eugene Stiglitz (born February 9, 1943) is an American New Keynesian economist, a public policy analyst, political activist, and a professor at Columbia University. He is a recipient of the Noble Memorial Prize in Economic Sciences (2001) and the John Bates Clark Medal (1979). He is a former senior vice president and chief economist of the World Bank. He is also a former member and chairman of the U.S. Council of Economic Advisers. He is known for his support for the Georgist public finance theory and for his critical view of the management of globalization, of laissez-faire economists (whom he calls “free-market fundamentalists”), and of international institutions such as the International Monetary Fund and the World Bank.

Joseph Stiglitz

The sub-title of this book is “Economics and the Good Society”, but the key word is “freedom”, and the key theme is that in society if one individual, group, company, institution, or market is given more freedom, some individual or group will have less freedom. And Stiglitz’ point is that in the US today (and in much of the developed world), the economic system (neoliberal capitalism) and its attendant political philosophy has failed because it waves the freedom flag but it neglects the many people who are harmed by the freedoms given to corporations, institutions and powerful individuals. The US does not understand that markets are not self-correcting, and require regulation. The author says that free and unfettered markets have conveyed great wealth and power to a few individuals but have exploited consumers, workers and the environment. Moreover, free markets have delivered financial, opioid and inequality crises. The book is rich with specific examples of how free markets have failed. He contends, in addition, that control of the environment, health and property – particularly intellectual property – should be improved. His arguments for what he calls progressive capitalism, and what it would do differently are compelling.There is an eight page chart summarizing the failures of neoliberal economics and what progressive capitalism’s corrective policies would be.

One cannot help feeling that the prescription for putting progressive capitalism in place is missing. I, for one, am sold on progressive capitalism. How can we implement it? But the barriers to change are enormous. The entire Republican party is wholly committed to neoliberal capitalism. Millions of wealthy, powerful people depend on it. It is ingrained in the American culture. A huge educational effort would be required to gain the understanding of the American people. The change is so fundamental that it cries out for a constitutional change. But that would never happen. What is more possible is the Democratic Party taking up the ideology and implementing it gradually over the course of a generation. In the meantime we have the first step in Stiglitz’ book: we know what’s wrong with neoliberal economics, and that makes it essential reading for every American.