Birkbeck hosts Nobel Prize-winning economist Joseph Stiglitz
Nobel Prize-winning economist Professor Joseph Stiglitz has said that "Inequality is bad for business, bad for the economy, bad for our democracies, and bad for society” in a lecture hosted at Birkbeck.
Nobel Prize-winning economist Professor Joseph Stiglitz has said that "Inequality is bad for business, bad for the economy, bad for our democracies, and bad for society” in a lecture jointly organised with Birkbeck’s Department of Politics and chaired by Birkbeck alumus John McDonnell MP, the Shadow Chancellor.
Introduced by Birkbeck Professor of Public Policy Deborah Mabbett, Professor Stiglitz – a member of Labour’s Economic Advisory Council and University Professor at Columbia University – described in detail the enormous growth in inequality over the last thirty years, especially in the USA, with the UK following behind.
Median incomes in the USA have stagnated, Professor Stiglitz explained, with a real decline in incomes among full-time male workers being observed over the last four decades. He described that there are now more people in poverty, more wealth is concentrated among those at the top and that the middle classes are being ‘eviscerated’.
The most invidious aspect of these changes has been the effect on inequality of opportunity, he said.
Globally, data showed that while the burgeoning middle classes in emerging economies have benefitted in the last three decades, as well as the very wealthiest in rich countries, both the lower-middle and middle classes in those countries have lost out, he added.
Speaking shortly after the event, he said:
“Inequality is a political choice, not an economic necessity. Over the last 30 years, almost all OECD countries have seen increased inequality and things cannot go on like this.
"Inequality is bad for business, bad for the economy, bad for our democracies, and bad for society.”
The lecture was followed by questions from the audience chaired by John McDonnell MP, Labour’s Shadow Chancellor and an alumus of Birkbeck’s Department of Politics, which ranged across issues including the introduction of the new Living Wage, technological change and its effect on job losses, the introduction of a Financial Transaction Tax and ideas around introducing a universal income.
The Shadow Chancellor also referred to the Labour Party’s series of lectures – of which Professor Stiglitz’s at Birkbeck was one – to stimulate debate about the future of the economy and especially how it could be structured to be fairer and more just.
"It's been an honour to have Professor Stiglitz as a member of our Economic Advisory Council, and also to take part in our 'New Economics' lecture series,” he said.
Dr Alex Colas, Assistant Dean of the Department of Politics, added:
“It was an honour and a pleasure to host Professor Stiglitz’s lecture at Birkbeck.
"With this and other events on subjects like the EU referendum and civil war in the Middle East, the Department of Politics is establishing itself as a venue where leading intellectuals, political figures and commentators discuss the most pressing issues of our time.
"Our students greatly value these opportunities and we aim to deliver more in the future."
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