By: Felipe Argote
The new book by economist Joseph Stiglitz is a veritable treatise on post-neoliberal political economy.
Principia with the explanation of the genesis of the global financial crisis: "start (the crisis) with the technology bubble burst in the spring of 2000, a bubble which Greenspan, Federal Reserve chairman at the time, allowed its development and had sustained growth in the 90's. "
Bush administration, according to Stiglitz's book, took the collapse of the tech bubble it bottomed In 1993, as an excuse to cut taxes for the wealthy with the argument that the tax cuts to big business was the cure for all ills. The crisis is then fed from 2003 when the war began Iraq in the price of a barrel of oil was rising $ 32 to $ 137 in 2008. This meant that Americans were paying U.S. $ 1400 million a day in oil imports compared to 292 million before the war.
That was the beginning, according to Stiglitz the current crisis explodes unstoppable in 2008. The contradiction is that to exploit the crisis, the great irony is that Greenspan and Bush decided to make the state the owner of one of the largest automobile factories in the world, the largest insurance company and many of the major banks. In a country where socialism is a curse, says Stiglitz, is that the Bush administration, which made a fetish of the market (that's what I say), decided to socialize the risk and intervened in the market in a manner unprecedented in American history and the world.
About Obama administration ranks as pragmatic issues because although, in practice, continued with the most proven wrong policies of his predecessor in the White House, George Bush. According to Stiglitz, this policy has benefited Wall Street, but has done little for the ordinary citizen. Says that the best thing you can say about the economy in 2009 is that it has managed to end its free fall (fere fall), but we should consider ending their free fall does not mean that you have returned to normal prior to his fall.
Obama, the candidate, seemed to understand well the need for economic reform, while Obama, the president seems to have become a defender of the status quo, continuing the course set by bank bailout the Bush administration.
The old adage that he who pays the band decided the music is effective in this field, says Nobel laureate in economics. The financial sector has paid music in both parties: Republican and Democrat and therefore decides to dance music.
The extensive treatise on political economy of more than four pages criticizes the position of the Austrian school popularly known as neoliberal. The author claims that the last time a country tried to deregulate the banking business was Chile during the Pinochet dictatorship and this resulted in disaster. About 30 percent of Chilean bank loans were bad and the country took a quarter century to pay the debts of this experiment.
neo Economist Keynesian proposes a new world economic order based on the "new deal" and does not apply to the globalized world, but the neoclassical model has very little to contribute to innovation.
Joseph Eugene Stiglitz was born in Indiana, USA, in 1943. He is an economist and writer. It was Nobel Prize in Economics in 2001. He taught at several American universities including Yale, Stamford and Princeton. Currently, he teaches his professorship at Columbia University. It was part of a team of economic advisers to President Bill Clinton and chief economist of the World Bank between 1997 and 2000. One of the biggest critics of so-called efficient markets of neoclassical theory of the economy. One of his most popular books is "Globalization and Its Discontents," published in 2002 in which harshly criticizes the policies of the IMF and the World Bank, accusing them of serving the great powers rather than to service economies weak which is supposed to serve.
0 comments:
Post a Comment