The American Dream Is Now a Myth: Joseph Stiglitz - Yahoo! Finance
According to Stiglitz, regulations, particularly those governing the financial sector are contributing to the disparities.
"Financial regulations allow predatory lending and abusive credit-card
practices that transfer money from the bottom to the top. So do
bankruptcy laws that provide priority for derivatives," he said.
Stiglitz argues that Americans were increasingly being made to think
that higher income inequality was a byproduct of faster growth, but he
says that's a false choice. The U.S. economy grew faster in the decades
after the Second World War, when inequalities were lower, than it did
after 1980, he said.
"Textbooks teach us that we can have a more egalitarian society only if
we give up growth or efficiency," he said. "However, closer analysis
shows that we are paying a high price for inequality: it contributes to
social, economic and political instability, and to lower growth."
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