Excerpts from ''The Price of Inequality''
My current read is ''The Price of Inequality'' written by Joseph E. Stiglitz (winner of the Nobel prize for Economics). I am sharing some excerpts from the book that I believe will provide some food for thought on global markets, their impact on local economies and why there is so much inequality nowadays between rich and poor people, stemming from bad government policies or market regulations that favor the top 1%. ''The theory that came to dominate, begininning in the second half of the nineteenth century-and still does-was called ''marginal productivity theory'';those with higher productivities earned higher incomes that reflected their greater contribution to society. Competitive markets, working through the laws of supply and demand, determine the value of each individual's contributions. If someone has a scarce and valuable skill, the market will reward him amply, because of his greater contribution to output. If he has no ski...
