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Like all crises, the 2008 financial crisis was a moment of truth, not least for conventional wisdom about the US economy. Joseph Stiglitz was one of the few economists challenging the status quo long before the crisis erupted. In this selection of commentaries, written exclusively for Project Syndicate, he examines the successes and failures of America's response to the global financial crisis - and offers solutions to the US economy's troubles.
Even many of the wealthiest Americans would agree that the United States needs to overhaul its tax policies to restore a sense of social justice. But, notes Edoardo Campanella, Future of the World Fellow at IE University's Center for the Governance of Change, such reforms would not be enough to restart the engines of social mobility and promote greater equality of opportunity.
Higher nominal wages for low-paid workers can boost real earnings, increase consumer spending, and help make housing more affordable. And insofar as raising the minimum would increase companies’ wage bill, it would create a stronger incentive to replace labor with capital, which could lay the foundation for renewed productivity growth.
