52 Economic Quotes of Joseph Stiglitz

” Globalization and trade liberalization were supposed to make us all better off through the mechanism of trickle-down economics. What we seemed to be seeing instead was trickle-up economics, accompanied by a destruction of democratic politics, as we moved ever closer to a system of ‘one dollar, one vote’ as opposed to ‘one person, one vote.’ “
” High levels of economic inequality lead to imbalances in political power, as those at the top use their economic weight to shape our politics in ways that give them more economic power. “
” When you have a highly divided society, it’s hard to come together to make investments in the common good. “
” We share a common planet, and the world has learned the hard way that we have to get along and work together. We have learned, too, that cooperation can benefit all. “
” What separates developing countries from developed countries is as much a gap in knowledge as a gap in resources. “
” If there is a silver lining in the Trump cloud, it is a new sense of solidarity over core values such as tolerance and equality, sustained by awareness of the bigotry and misogyny, whether hidden or open, that Trump and his team embody. “
” With the election of Trump, America’s soft power has taken a big hit. The United States has moved from a position of leadership in the creation of a rules-based international system to a position of leadership in its destruction and the creation of a regime of global protectionism. The damage will be long-lasting. “
” Bitcoin is successful only because of its potential for circumvention, lack of oversight. “
” If I came home with a grade of A, my father would say, ‘There must have been a lot of dummies in that class.’ “
” Economists often like startling theorems, results which seem to run counter to conventional wisdom. “
” People at the top spend less money than those at the bottom, so when you have redistribution toward the top, aggregate demand goes down. Unless you intervene, you’re going to have a weak economy unless something else happens. “
” It’s very hard to persuade a young person who has seen the Great Recession, who has seen all the problems with inequality, to tell them inequality is not important and that markets are always efficient. They’d think you’re crazy. “
” Society can’t function without shared prosperity. “
” The notion that every well educated person would have a mastery of at least the basic elements of the humanities, sciences, and social sciences is a far cry from the specialized education that most students today receive, particularly in the research universities. “
” Trump sees the world in terms of a zero-sum game. In reality, globalisation, if well managed, is a positive-sum force: America gains if its friends and allies – whether Australia, the E.U., or Mexico – are stronger. But Trump’s approach threatens to turn it into a negative-sum game: America will lose, too. “
” My teachers helped guide and motivate me; but the responsibility of learning was left with me, an approach to learning which was later reinforced by my experiences at Amherst. “
” With neoliberalism discredited and austerity failed, we need to rewrite the rules of the economy once again. But this time in the right way. We need rules that focus on long-term economic growth, and the only kind of sustainable prosperity is shared prosperity. “
” Hedge funds are not noted for their long-term thinking – for them, a quarter is an eternity. “
” By taxing CO2, firms and households would have an incentive to retrofit for the world of the future. The tax would also provide firms with incentives to innovate in ways that reduce energy usage and emissions – giving them a dynamic competitive advantage. “
” The IP standards advanced countries favour typically are designed not to maximise innovation and scientific progress, but to maximise the profits of big pharmaceutical companies and others able to sway trade negotiations. “
” Free migration within Europe means that countries that have done a better job at reducing unemployment will predictably end up with more than their fair share of refugees. Workers in these countries bear the cost in depressed wages and higher unemployment, while employers benefit from cheaper labor. “
” One can only hope that America, and other countries, will not need more natural persuasion before taking to heart the lessons of Hurricane Harvey. “
” But while I loved all of these courses, there was an irresistible attraction of economics. “
” Under the rule of law, if the government wants to prevent firms from outsourcing and offshoring, it enacts legislation and adopts regulations to create the appropriate incentives and discourage undesirable behaviour. It does not bully or threaten particular firms or portray traumatised refugees as a security threat. “
” China-led globalization in some ways worries me because they are not concerned about human rights, labor rights. They probably aren’t even really concerned about competitive marketplaces. So in some ways, they’re like Mr. Trump. “
” European officials thought that austerity was part of what they called their ‘convergence policies,’ of trying to bring countries together. Instead, it actually made things worse. There’s more inequality within countries and more disparity across countries. “
” Too many countries of the former Soviet bloc remain under the control of authoritarian leaders, including some, like the Russian president, Vladimir Putin, who have learned how to maintain a more convincing facade of elections than their communist predecessors. “
” There’s a long list of investments that governments could and should be making. There is strengthening infrastructure, such as transport and communications; there is investment in education; there is investment in families, particularly putting measures in place that free women from having to make the choice between raising a family and work. “
” Letting bygones be bygones is a basic principle in economics. “
” The U.S. basically wrote the rules and created the institutions of globalisation. “
” A lot of my book, ‘The Price of Inequality,’ is about why there has been an increase in rent-seeking. “
” When markets fail, as they often do, collective action becomes imperative. “
” There is a broad consensus, not only in the United States but in most of the world, that if you are in an economic downturn, you need to stimulate. Germany seems to be an exception. “
” In addition to offering benefits to those who invest, carry out research, and create jobs, higher taxes on land and real-estate speculation would redirect capital toward productivity-enhancing spending – the key to long-term improvement in living standards. “
” After the destruction of New Orleans by Hurricane Katrina in 2005, the shutdown of much of New York City by Sandy in 2012, and now the devastation wrought on Texas by Harvey, the U.S. can and should do better. “
” The extra curricular activity in which I was most engaged – debating – helped shape my interests in public policy. “
” Amherst was pivotal in my broad intellectual development; MIT in my development as a professional economist. “
” The diminishing economic role of the United States in the global economy means that global political power will also become more dispersed. The world will become multipolar. By clumsily re-asserting a wish for U.S. dominance, Donald Trump is accelerating the opposite. “
” One of the arguments I make for the failure of the euro is that, at the time it was being constructed, there was a ‘neo-liberal’ ideology which said that all we need to do to make this thing work is to get deficits low, keep inflation low, and take down barriers, and then everything would be fine. “
” There is something about the mindset of a scientist that is different – an awareness of uncertainty, modeling, proof. “
” In an economy, when the government spends more and invests in the economy, that money circulates, and recirculates again and again. So not only does it create jobs once: the investment creates jobs multiple times. “
” The laws of normal economics dictate that lower taxes combined with increased spending will lead to bigger deficits. “
” Ensuring preschool education for all and investing more in public schools is essential if the U.S. is to avoid becoming a neo-feudal country where advantages and disadvantages are passed on from one generation to the next. “
” The reality is that what we did in 2010 with the Dodd-Frank wasn’t enough. “
” Donald J. Trump has the good fortune of taking office as the economy is finally recovering from the 2008 crisis. “
” Under Ronald Reagan in the United States and Margaret Thatcher in the U.K., there was a rewriting of the basic rules of capitalism. These two governments changed the rules governing labour bargaining, weakening trade unions, and they weakened anti-trust enforcement, allowing more monopolies to be created. “
” President Trump sees the world in transactional and zero-sum terms – if something is good for China, it must be bad for the U.S. By contrast, economists see the world in much more nuanced ways: if globalization is well-managed, it can be a positive-sum game, where both the U.S. and China gain; if it is badly managed, it can be negative-sum. “
” We have a locale-based education system; we have increasing economic segregation. We clearly need a larger federal program to try to help disadvantaged districts. “
” Macroeconomic policy can never be devoid of politics: it involves fundamental trade-offs and affects different groups differently. “
” Tax policy should reflect a country’s values and address its problems. “
” Those who have contributed great positive innovations to our society, from the pioneers of genetic understanding to the pioneers of the Information Age, have received a pittance compared with those responsible for the financial innovations that brought our global economy to the brink of ruin. “
” China’s government has far more control over the country’s economy than our government has over ours, and it is moving from export dependence to a model of growth driven by domestic demand. Any restriction on exports to the U.S. would simply accelerate a process already underway. “