The Price of Inequality

The Price of Inequality: How Today’s Divided Society Endangers Our Future – Joseph E. Stiglitz

1. Full Citation

Stiglitz, J.E. (2012) The Price of Inequality: How Today’s Divided Society Endangers Our Future. New York: W.W. Norton & Company.

2. Introduction

The Price of Inequality critically examines the causes and consequences of rising economic inequality in the United States and globally. Nobel laureate Joseph Stiglitz argues that inequality undermines economic growth, democracy, and social cohesion. Drawing on economic theory, empirical data, and policy analysis, the book advocates for reforms aimed at reducing disparities and promoting inclusive prosperity.

3. Author Background and Credentials

Joseph E. Stiglitz is a Nobel Prize-winning economist, professor at Columbia University, and former chief economist at the World Bank. Known for his work on information asymmetry and market failures, Stiglitz is a prominent critic of unregulated markets and advocate for equitable economic policies.

4. Summary of Contents

Core themes include:

  1. Causes of Inequality
    • Examines globalization, technological change, and policy choices favoring the wealthy.
  2. Economic and Social Consequences
    • Links inequality to economic instability, reduced social mobility, and political dysfunction.
  3. Information Asymmetry and Market Failures
    • Discusses how imperfect information exacerbates inequality.
  4. Policy Solutions
    • Advocates progressive taxation, stronger labor protections, and investments in education.
  5. Democracy and Inequality
    • Explores how economic power translates into political influence.

5. Critical Evaluation

a. Coherence and Argumentation

Stiglitz presents well-supported arguments, combining theory with real-world examples.

b. Originality and Intellectual Contribution

The book synthesizes inequality research with policy prescriptions in an accessible format.

c. Evidence, Sources, and Method

Uses economic data, case studies, and institutional analysis.

d. Style and Accessibility

Clear and persuasive prose aimed at a broad readership.

e. Limitations and Critiques

Some critics argue that solutions may underestimate political and economic complexities.

6. Comparative Context

Compared with:

  • Thomas Piketty’s Capital in the Twenty-First Century – Both analyze inequality’s growth and impacts
  • Anthony Atkinson’s Inequality: What Can Be Done? – Shares policy focus
  • David Autor’s research on labor market changes

7. Thematic or Disciplinary Relevance

Relevant to:

  • Inequality and economic policy
  • Political economy and governance
  • Labour economics and social justice
  • Macroeconomic stability

8. Reflection or Practical Application

Provides a foundation for policymakers to design strategies addressing economic disparities and strengthening democracy.

9. Conclusion

The Price of Inequality is a compelling analysis of the challenges posed by rising inequality and a call for actionable reforms to create a fairer economy.

Recommended for: Economists, policymakers, social scientists, and engaged citizens.

10. Other Works by the Same Author

  • Globalization and Its Discontents (2002)
  • The Great Divide (2015)
  • Making Globalization Work (2006)

11. Similar Books by Other Authors

  • Thomas Piketty – Capital in the Twenty-First Century
  • Anthony Atkinson – Inequality: What Can Be Done?
  • Branko Milanovic – Global Inequality
  • Emmanuel Saez & Gabriel Zucman – The Triumph of Injustice

12. References (only if external works are cited)

  • Stiglitz, J.E. (2012) The Price of Inequality
  • Piketty, T. (2013) Capital in the Twenty-First Century
  • Atkinson, A.B. (2015) Inequality: What Can Be Done?
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