Nobel Laureate Dr. Joseph Stiglitz argues that our current economic and political system is a perfect storm of increasing monopolies and wealth inequality, which in turn allow greater political power and so perpetuates itself. He notes, for example, just how little of last year's tax cuts actually went into reinvestment (instead to massive stock buy-backs). Rent-seeking has become the norm, and now it is often more profitable to lobby Congress to remove restrictions on consolidation and to lower taxes than it is to create new products or find efficiencies in existing markets. Because politics has been captured as well, however, it is difficult to see what the way out looks like.

posted by johnnyFive: 214 days ago