Dr. Stiglitz thank you for including this crucial fact in your article. Economic disparity is at the root of so much social and political conflict throughout the world it is amazing that it does not receive more direct priority attention by governments, informed public, and academic institutions. The reason for this certainly is easy to discern. With the power structure populated by the "haves" it leaves the "have not" demographic incapable of making the fundamental changes in policies, laws, or practices needed to reverse the condition. What I fear is that the ultimate result of continuous degradation in the distribution of economic resource and franchise is a move to anarchy by those being deprived. While many say it will never happen in the USA, I believe it can happen here as it did many years ago in France, and in Russia, and elsewhere. The political philosophy that is most responsible for continuing this dangerous trend is that espoused by extremists of Libertarian thinking. Their utilitarian philosophy ignores the reality of the natural distribution of human capabilities. Some people are able to make it on their own, others cannot and will always need help. Ignoring the needs of the needy will eventually expand the demographic of the have-not and drive it to the level where they will demand the changes, under force of arms, that should be granted freely and fairly by a responsive aristocracy.
War must be avoided at all cost. We need to stop the practice of responding to international crises by initiating military interventions. President Obama has this right. Lets not encourage a return to unilateral or bi-lateral exploits to attack other sovereign nations with whom we have differences. Obama's approach to applying sanctions, diplomatic pressures, and world community outrage is the right way. Think defensively, not offensively. Defend our homeland to the hilt, but what happens on foreign lands will ultimately be the decision of the leadership of those countries. Intervening militarily will not change that, only widen the conflict.
Kenneth: Your optimism regarding a return ultimately to the concept of 4%-5% being "full" employment is nice to hear. But I wonder if this is really possible. Is reality the status that we are structurally doomed to a higher unemployment rate? Is the problem just having more workers than are needed or ever will be needed again? Can this question be studied in a really quantitative and rational way? The chess examples are nice, but is that a representative picture? Certainly as industry grows and makes investments they will much more likely be in methods for labor efficiency rather than increases in labor intensive operations. Are we in a new paradigm where there is a need for a new way of defining labor and how it is compensated?
Kenneth: Your optimism regarding a return ultimately to the concept of 4%-5% being "full" employment is nice to hear. But I wonder if this is really possible. Is reality the status that we are structurally doomed to a higher unemployment rate? Is the problem just having more workers than are needed or ever will be needed again? Can this question be studied in a really quantitative and rational way? The chess examples are nice, but is that a representative picture? Certainly as industry grows and makes investments they will much more likely be in methods for labor efficiency rather than increases in labor intensive operations. Are we in a new paradigm where there is a need for a new way of defining labor and how it is compensated?
Kenneth: Your optimism regarding a return ultimately to the concept of 4%-5% being "full" employment is nice to hear. But I wonder if this is really possible. Is reality the status that we are structurally doomed to a higher unemployment rate? Is the problem just having more workers than are needed or ever will be needed again? Can this question be studied in a really quantitative and rational way? The chess examples are nice, but is that a representative picture? Certainly as industry grows and makes investments they will much more likely be in methods for labor efficiency rather than increases in labor intensive operations. Are we in a new paradigm where there is a need for a new way of defining labor and how it is compensated?
The Post-Crisis Crises
Dr. Stiglitz thank you for including this crucial fact in your article. Economic disparity is at the root of so much social and political conflict throughout the world it is amazing that it does not receive more direct priority attention by governments, informed public, and academic institutions. The reason for this certainly is easy to discern. With the power structure populated by the "haves" it leaves the "have not" demographic incapable of making the fundamental changes in policies, laws, or practices needed to reverse the condition. What I fear is that the ultimate result of continuous degradation in the distribution of economic resource and franchise is a move to anarchy by those being deprived. While many say it will never happen in the USA, I believe it can happen here as it did many years ago in France, and in Russia, and elsewhere. The political philosophy that is most responsible for continuing this dangerous trend is that espoused by extremists of Libertarian thinking. Their utilitarian philosophy ignores the reality of the natural distribution of human capabilities. Some people are able to make it on their own, others cannot and will always need help. Ignoring the needs of the needy will eventually expand the demographic of the have-not and drive it to the level where they will demand the changes, under force of arms, that should be granted freely and fairly by a responsive aristocracy.
Time to Test Iran
War must be avoided at all cost. We need to stop the practice of responding to international crises by initiating military interventions. President Obama has this right. Lets not encourage a return to unilateral or bi-lateral exploits to attack other sovereign nations with whom we have differences. Obama's approach to applying sanctions, diplomatic pressures, and world community outrage is the right way. Think defensively, not offensively. Defend our homeland to the hilt, but what happens on foreign lands will ultimately be the decision of the leadership of those countries. Intervening militarily will not change that, only widen the conflict.
King Ludd is Still Dead
Kenneth: Your optimism regarding a return ultimately to the concept of 4%-5% being "full" employment is nice to hear. But I wonder if this is really possible. Is reality the status that we are structurally doomed to a higher unemployment rate? Is the problem just having more workers than are needed or ever will be needed again? Can this question be studied in a really quantitative and rational way? The chess examples are nice, but is that a representative picture? Certainly as industry grows and makes investments they will much more likely be in methods for labor efficiency rather than increases in labor intensive operations. Are we in a new paradigm where there is a need for a new way of defining labor and how it is compensated?
King Ludd is Still Dead
Kenneth: Your optimism regarding a return ultimately to the concept of 4%-5% being "full" employment is nice to hear. But I wonder if this is really possible. Is reality the status that we are structurally doomed to a higher unemployment rate? Is the problem just having more workers than are needed or ever will be needed again? Can this question be studied in a really quantitative and rational way? The chess examples are nice, but is that a representative picture? Certainly as industry grows and makes investments they will much more likely be in methods for labor efficiency rather than increases in labor intensive operations. Are we in a new paradigm where there is a need for a new way of defining labor and how it is compensated?
King Ludd is Still Dead
Kenneth: Your optimism regarding a return ultimately to the concept of 4%-5% being "full" employment is nice to hear. But I wonder if this is really possible. Is reality the status that we are structurally doomed to a higher unemployment rate? Is the problem just having more workers than are needed or ever will be needed again? Can this question be studied in a really quantitative and rational way? The chess examples are nice, but is that a representative picture? Certainly as industry grows and makes investments they will much more likely be in methods for labor efficiency rather than increases in labor intensive operations. Are we in a new paradigm where there is a need for a new way of defining labor and how it is compensated?