Notes on: Joseph Stiglitz: The Economics of Information, an interview at The Asia Society from February of 2008.
Balance of global power is shifting due to:
- rise of china and india
- financial crisis
- US debt
International organizations designed around the post WWII power structure are out of date and failing due to lack of legitimacy. True of the World Bank, IMF, and G8. Advocates the rule of law between nations and points out that the invasion of Iraq was a violation of international law.
US foreign policy often made for the benefit of campaign donors. Intellectual property rights deals made in secret undemocratically that favor narrow interests in the US. Much of foreign aid is also part of a global military strategy rather than truly for purposes of aid.
Why is China, a non-democracy, growing faster than India, a democracy? Stiglitz claimed that China allows more participation. (really?) China is investing heavily in Africa.
Under what conditions does Adam Smith's invisible hand work? In other words, are markets efficient always or under specific conditions? The financial crisis seems to be a case where the market failed. Market handle some situations poorly: imperfect information, externalities, public goods.
Median income in US lower today (2008) than 7 years ago and among males, lower than 30 years ago. Globalization is only one factor, but an easy target because the blame falls on outsiders. Social protection is not protectionist.
The stimulus package gives little directly to the unemployed, where it would be most effictive, due to being immediately spent. Stimulus should be spent on assets that will increase our future income.
GDP flawed measure. Median income can fall while GDP is rising if inequality is also rising. GDP neglects degradation of the environmental and depletion of resources. Switch from GNP to GDP politically motivated? (example: resource extraction).
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