A Q & A with Joseph Stiglitz, Nobel prize-winner in economics, on Der Spiegel ought to be a sober wake-up call for Americans - especially when it comes to voting in the presidential election in 5 weeks time.
"SPIEGEL: Professor Stiglitz, how do you expect the next President of the United States to tackle the problem of unequal distribution of wealth?
Stiglitz: First, he has to recognize that there is a problem at all. Watching inequality grow is like watching the grass grow. You don't see it happening day by day, but over a period of time it becomes visible.
SPIEGEL: What is the scale this inequality?
Stiglitz: In the last decades, income and wealth disparity have grown dramatically in this country. Let me give you an example: In 2011, the six heirs to the Walmart empire commanded wealth of almost $70 billion, which is equivalent to the wealth of the entire bottom 30 percent of US society.
SPIEGEL: The US has always thought of itself as a land of opportunity where people can go from rags to riches. What has become of the American dream?
Stiglitz: This belief is still powerful, but the American dream has become a myth. The life chances of a young US citizen are more dependent on the income and education of his parents than in any other advanced industrial country for which there is data. The belief in the American dream is reinforced by anecdotes, by dramatic examples of individuals who have made it from the bottom to the top -- but what matters most are an individual's life chances. The belief in the American dream is not supported by the data.
SPIEGEL: What do the numbers suggest?
Stiglitz: There has been no improvement in well-being for the typical American family for 20 years. On the other side, the top one percent of the population gets 40 percent more in one week than the bottom fifth receive in a full year. In short, we have become a divided society. America has created a marvelous economic machine, but most of the benefits have gone to the top."
On a not-dissimilar theme, see also this piece "Why Let the Rich Hoard All the Toys? by Nicholas D Kristof in The New York Times.
"SPIEGEL: Professor Stiglitz, how do you expect the next President of the United States to tackle the problem of unequal distribution of wealth?
Stiglitz: First, he has to recognize that there is a problem at all. Watching inequality grow is like watching the grass grow. You don't see it happening day by day, but over a period of time it becomes visible.
SPIEGEL: What is the scale this inequality?
Stiglitz: In the last decades, income and wealth disparity have grown dramatically in this country. Let me give you an example: In 2011, the six heirs to the Walmart empire commanded wealth of almost $70 billion, which is equivalent to the wealth of the entire bottom 30 percent of US society.
SPIEGEL: The US has always thought of itself as a land of opportunity where people can go from rags to riches. What has become of the American dream?
Stiglitz: This belief is still powerful, but the American dream has become a myth. The life chances of a young US citizen are more dependent on the income and education of his parents than in any other advanced industrial country for which there is data. The belief in the American dream is reinforced by anecdotes, by dramatic examples of individuals who have made it from the bottom to the top -- but what matters most are an individual's life chances. The belief in the American dream is not supported by the data.
SPIEGEL: What do the numbers suggest?
Stiglitz: There has been no improvement in well-being for the typical American family for 20 years. On the other side, the top one percent of the population gets 40 percent more in one week than the bottom fifth receive in a full year. In short, we have become a divided society. America has created a marvelous economic machine, but most of the benefits have gone to the top."
On a not-dissimilar theme, see also this piece "Why Let the Rich Hoard All the Toys? by Nicholas D Kristof in The New York Times.
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