Saturday, 13 October 2012

Joseph Stiglitz Interview about his book "The Price Of Inequality"

I saw this interview of renowned economist Joseph Stiglitz. He was interviewed by Charlie Rose discussing the aspects covered in his new book "The Price Of Inequality". These are the kind of people we should be listening to. We need people like him advising the Indian government on how to have sustainable economic growth rather than adopt the failed American models of the past.

Mr Stiglitz makes an argument about raising capital gains tax. Contrast it to Shome committee which argues in favour of abolishing capital gains tax.

Mr Stiglitz sees growing inequality in the USA, our policy experts argue on television channels that the poor in our country do not care if Mr Ambani is getting very rich, they care that they are themselves doing better in absolute terms.

Mr Stiglitz mentions that the USA had an unsustainable model of development of zero savings, high consumption and real estate bubble. We in India hear about reviving the real estate market by reducing interest rate on home loans and providing lending to real estate companies, at time when real
estate companies are not selling their stockpile and keeping prices artificially low thanks to their 'holding capacity'.

Mr Stiglitz feels that America has a third world infrastructure. Where does that leave Indian infrastructure? In an alternate world!!

He believes that America should spend more on education.

He says in the interview that the Federal Reserve in the US did not do enough to check predatory, abusive credit card practices, excessive risk taking of bank's lending and deflating the housing bubble.

He says that if you spend too much time talking to bankers then you start to think like them. He is hinting at keeping an arms length relationship between government and private industry. Is our government getting too much influenced by industry bodies? Are they keeping arms length relationship.

He says the America should follow the European  health care model. In India we are moving towards the American model of more private sector participation and dependence on private Indian and Foreign medical insurance companies.

Another talk by Mr Joseph Stiglitz in which he speaks about the issues covered in his latest book is below:

No comments:

Post a Comment