Joseph Stiglitz: 'Trickle Up Economics' to Blame for Crisis

Complete video at: http://fora.tv/2010/07/26/Joseph_Stiglitz_on_Free_Markets_and_the_World_Economy

Nobel Prize-winning economist Joseph Stiglitz argues that "trickle up economics" created the credit bubble that triggered the recent financial crisis. "There was a party going on, and nobody wanted to be a party-pooper," says Stiglitz.

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Visiting Nobel Laureate and global economist Professor Joseph Stiglitz believes Australia's good fortune in being sheltered from the worst of the GFC means we may not fully comprehend its impact internationally.

On his tour of Australia, he comments on the state of the Australian economy, particularly in context of the Global Financial Crisis, the role of natural resources within this economy, and Australia's response to global warming.

Professor Stiglitz travelled all over Australia for three weeks as the inaugural speaker for the Eminent Speaker Series, hosted by the Economic Society of Australia. The series has been initiated to provide an opportunity for industry professionals, government representatives and academics to hear from the world's leading economists in an open forum. - Australian Broadcasting Corporation

Joseph Stiglitz was chief economist at the World Bank until January 2000. Before that, he was the chairman of President Clinton's Council of Economic Advisers. He was awarded the Nobel Prize in economics in 2001. He is currently a finance and economics professor at Columbia University. He is the author of Globalization and Its Discontents and The Roaring Nineties.

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[TeifiValley123]

@devourerofbabies The 10% of economists who were traditionally branded as 'non-orthodox'. These people have always been there but they have largely been ignored, marginalised and generally havent been given a voice. They're only now being given a platform to speak on, because its only now that what they have been predicting for the last 40 years has finally happened. They all differ, but an example would be the Australian, Steve Keen. I think he has a good general picture.

[devourerofbabies]

@TeifiValley123 Who, in your opinion, is not out in space?

[TeifiValley123]

@devourerofbabies When i talk about people being in outer space, I'm talking about 90% of market economists, or what are known as 'orthodox' economists. The version of capitalism they describe is something that is found in an imaginary world and has nothing to do with the way economies work in countries like Britain and the US. This current depression, and how its been dealt with,is another clear example of that.

[devourerofbabies]

@TeifiValley123 Talking about the people who are in "outer space" as you put it and a hypothesis on why there are so many of them all of a sudden.

[TeifiValley123]

@devourerofbabies I dont understand where youre coming from

[devourerofbabies]

@TeifiValley123 This libertarian "Austrian" bullshit has spread like a virus. I don't know why. Maybe it's because they publish some strawman criticisms of the evil John Maynard Keynes while spitting out a handful of infantile concepts that contradict economics, and everybody gets a stiffy out of feeling smarter than Nobel prize winners.

[davidmaren2000]

yes western socialism has robbed all of us of standard of living. excessive taxation and government spending has trashed our economy. it leads to stagnation and the only way to grow is borrow money. recipe for disaster. how profound stiglitz and his keynesian friends are part of the problem.

[nelrish24]

its not economics who brings crisis..

[909jtscofield]

He is right time after time. just watched his 2011 State of the World Economy

[anryth]

@FidelJongIL I find it funny how those who think themselves brilliant are really only repackaging old ideas and pretending as if they are new and innovative. You're so engrossed in your own misunderstanding of the world that you don't even realize that you're sitting at the kiddy table. Economist such as Stiglitz never seem to be able to crack the surface of any issue they talk about and always approach problems with a very narrow and short term mind set.