- Joined
- Aug 6, 2008
- Messages
- 6,684
- Points
- 113
Growth is not just a matter of increasing GDP. It must be sustainable: Growth based on environmental degradation, a debt-financed consumption binge or the exploitation of scarce natural resources, without reinvesting the proceeds is not sustainable.
Growth must be inclusive; a majority of citizens must benefit. Trickle down economics does not work. America's recent growth was neither economically sustainable nor inclusive. Most Americans are worse off today than they were seven years ago.
But there need not be a trade-off between inequality and growth. Governments can enhance growth by increasing inclusiveness. A country's most valuable resource is its people. So it is essential to ensure that everyone can live up to their potential, which requires educational opportunities for all.
A modern economy also requires risk-taking. Individuals are more willing to take risks if there is a good safety net. If not, citizens may demand protection from foreign competition. Social protection is more efficient than protectionism.
Failure to promote social solidarity can have other costs, not the least of which are the social and private expenditures required to protect property and incarcerate criminals..."
Joseph E. Stiglitz
Growth must be inclusive; a majority of citizens must benefit. Trickle down economics does not work. America's recent growth was neither economically sustainable nor inclusive. Most Americans are worse off today than they were seven years ago.
But there need not be a trade-off between inequality and growth. Governments can enhance growth by increasing inclusiveness. A country's most valuable resource is its people. So it is essential to ensure that everyone can live up to their potential, which requires educational opportunities for all.
A modern economy also requires risk-taking. Individuals are more willing to take risks if there is a good safety net. If not, citizens may demand protection from foreign competition. Social protection is more efficient than protectionism.
Failure to promote social solidarity can have other costs, not the least of which are the social and private expenditures required to protect property and incarcerate criminals..."
Joseph E. Stiglitz
