The Price of Inequality

Stiglitz argues that federal regulators and lawmakers are often captured. What does he mean by captured? How does their capture contribute to inequality?

What is rent seeking? Why and how does Stiglitz seek to limit its effects on the US economy?

Stiglitz raises many concerns about globalization. Specifically, he rejects the idea that the free movement of capital is positive for the US economy. Discuss why Stiglitz believes that free movement of US capital to other countries contributes to America’s labor problems and increasing inequality.

Throughout his book Stiglitz argues against the political right. Why did he set up his argument in this fashion? Is it an effective way to engage and challenge the reader to see the problems with, and the solutions to, inequality from more than one side?

Stiglitz thinks that the big banks’ behavior toward the 99 percent is abhorrent. Argue against his claim on behalf of the 1 percent.

What are the main causes of market failure? Consider the roles of taxes and inflation as triggers or solutions to market failure.

Stiglitz argues that politicians shape the economic market and are ultimately responsible for giving and sustaining the advantage to the 1 percent. Assess the strengths and weaknesses of this argument.

Why can’t austerity bring about full economic recovery after a market failure? Discuss with reference to Stiglitz’s claim that the problem with the economy is low demand, not low supply.