Two big lessons of economic research over the past 10 years are that inequality is not the result of inexorable laws of economics but rather of policy; and that countries that adopt policies that lead to high inequality pay a high price – inequality not only leads to a divided society and undermines democracy, but it weakens economic performance. Hopefully, as Australia debates its new government’s budget and economic “reforms,” it bears this in mind.
Joseph Stiglitz is the winner of the 2001 Nobel Memorial Prize in Economics. He is a former chairman of President Clinton’s Council of Economic Advisers and Chief Economist of the World Bank. His most recent book is The Price of Inequality: How Today’s Divided Society Endangers Our Future.
AuntyUta 
What a pity Stiglitz doesn’t go all the way and call for ending the ability of private banks to create money out of thin air when they issue loans. So long as we allow banks to control our money, they will control our economy and reverse any political reforms we enact reducing inequality.
As you may be aware, Australian banks have nearly total control over the New Zealand money supply because they issue our money (as debt) whenever they issue mortgages, business loans etc.
It would be great if the Sydney Morning Herald promoted the work of Australian renegade economist Steven Keen, a prime advocate for ending fractional reserve banking: http://www.debtdeflation.com/blogs/2012/10/22/the-myth-of-fractional-reserve-banking/
Stuart, it is beyond me to understand why ” . . . the ability of private banks to create money out of thin air when they issue loans” why on earth this cannot be stopped or why governments do not want to stop this!
Is all this pursued with the goal of making the rich richer at the expense of the poor?
Absolutely it happens to make the rich richer. It’s been going own since the Bank of England was created in 1694. If you haven’t seen 97% Owned you should definitely watch it: https://www.youtube.com/watch?v=XcGh1Dex4Yo
Thanks, Stuart.