Stiglitz has almost got it, recognizing that clean air and water [and
ecosystems and their biodiversity] can only be had with a "new economic
model," however, he still wants to hang onto the "foundations of
economic growth," a fatally-flawed concept and a limiting factor to
conservation.
The new economic model is easy: transition to a steady state economy,
one that's in balance with the regenerative and assimilative limits of
the ecosphere. The difficulty: getting rid of the old paradigm that
economic growth is necessary and will solve our environmental problems,
which applies even to many in the conservation realm.
As those involved in myriad conservation projects, we need to start
vigorously addressing the root cause of our conservation
problems--economic growth--instead of simply continuing to only deal
with the symptoms.
*
*
*http://en.wikipedia.org/wiki/Joseph_E._Stiglitz*
*Wikipedia: Joseph Eugene "Joe" Stiglitz* (born February 9
<http://en.wikipedia.org/wiki/February_9>, 1943
<http://en.wikipedia.org/wiki/1943>) is an American
<http://en.wikipedia.org/wiki/United_States> economist
<http://en.wikipedia.org/wiki/Economist> and a member of the Columbia
University <http://en.wikipedia.org/wiki/Columbia_University> faculty.
He is a recipient of the John Bates Clark Medal
<http://en.wikipedia.org/wiki/John_Bates_Clark_Medal> (1979
<http://en.wikipedia.org/wiki/1979>) and the The Sveriges Riksbank Prize
in Economic Sciences in Memory of Alfred Nobel
<http://en.wikipedia.org/wiki/Nobel_Memorial_Prize_in_Economic_Sciences>
(2001 <http://en.wikipedia.org/wiki/2001>). Former Senior Vice President
and Chief Economist
<http://en.wikipedia.org/wiki/World_Bank_Chief_Economist> of the World
Bank <http://en.wikipedia.org/wiki/World_Bank>, he is known for his
critical view of globalization
<http://en.wikipedia.org/wiki/Globalization>, free-market economists
(whom he calls "free market fundamentalists
<http://en.wikipedia.org/wiki/Market_fundamentalism>") and some
international institutions like the International Monetary Fund
<http://en.wikipedia.org/wiki/International_Monetary_Fund> and the World
Bank <http://en.wikipedia.org/wiki/World_Bank>. In 2000 Stiglitz founded
the Initiative for Policy Dialogue
<http://en.wikipedia.org/wiki/Initiative_for_Policy_Dialogue> (IPD), a
think tank <http://en.wikipedia.org/wiki/Think_tank> on international
development based at Columbia University
<http://en.wikipedia.org/wiki/Columbia_University>. Since 2001 he has
been a member of the Columbia faculty, and has held the rank of
University Professor <http://en.wikipedia.org/wiki/University_Professor>
since 2003. He also chairs the University of Manchester
<http://en.wikipedia.org/wiki/University_of_Manchester>'s Brooks World
Poverty Institute
<http://en.wikipedia.org/wiki/Brooks_World_Poverty_Institute> and is a
member of the Pontifical Academy of Social Sciences
<http://en.wikipedia.org/wiki/Pontifical_Academy_of_Social_Sciences>.
Stiglitz is the second most cited economist in the world, as of
2008.^[1]
<http://en.wikipedia.org/wiki/Joseph_E._Stiglitz#cite_note-ideas-0>
------------------------------------------------------------------------
June 10, 2008
*Stiglitz: Rethink the Sources of Growth*
http://economistsview.typepad.com/economistsview/2008/06/stiglitz-rethin.html
Joseph Stiglitz says we need to change our ways:
The world must rethink the sources of growth, by Joseph E. Stiglitz,
Commentary, Project Syndicate
<http://www.gulf-times.com/site/topics/article.asp?cu_no=2&item_no=223410&version=1&template_id=46&parent_id=26>:
Around the world, protests against soaring food and fuel prices are
mounting. The poor ? and even the middle classes ? are seeing their
incomes squeezed... Politicians want to respond..., but do not know
what to do. ...
Hillary Clinton and John McCain took the easy way out, and supported
a suspension of the gasoline tax... Only Barack Obama stood his
ground and rejected the proposal... But if Clinton and McCain were
wrong, what should be done? One cannot simply ignore ... those who
are suffering. ...
When George Bush was elected, he claimed that tax cuts for the rich
would cure all the economy?s ailments. The benefits of
tax-cut-fuelled growth would trickle down to all...
Tax cuts were supposed to stimulate savings, but household savings
in the US have plummeted to zero. They were supposed to stimulate
employment, but labour force participation is lower than in the
1990?s. What growth did occur benefited only the few at the top.
Productivity grew, for a while, but it wasn?t because of Wall Street
financial innovations. The financial products being created didn?t
manage risk; they enhanced risk. ... Millions of Americans will
likely lose their homes and, with them, their life savings.
At the core of America?s success is technology, symbolised by
Silicon Valley. The irony is that the scientists making the
advances..., and the venture capital firms that finance it were not
the ones reaping the biggest rewards in the heyday of the real
estate bubble. ...
The world needs to rethink the sources of growth. If the foundations
of economic growth lie in advances in science and technology, not in
speculation in real estate or financial markets, then tax systems
must be realigned.
Why should those who make their income by gambling in Wall Street?s
casinos be taxed at a lower rate than those who earn their money in
other ways? Capital gains should be taxed at least at as high a rate
as ordinary income. ... In addition, there should be a windfall
profits tax on oil and gas companies.
Given the huge increase in inequality in most countries, higher
taxes for those who have done well ? to help those who have lost
ground from globalisation and technological change ? are in order,
and could also ameliorate the strains imposed by soaring food and
energy prices. ...
Two factors set off today?s crisis: the Iraq war contributed to the
run-up in oil prices..., while bio-fuels have meant that food and
energy markets are increasingly integrated. ...
Huge agriculture subsidies ... have weakened agriculture in the
developing world... Rich countries must reduce, if not eliminate,
distortional agriculture and energy policies, and help those in the
poorest countries improve their capacity to produce food.
But this is just a start: we have treated our most precious
resources ? clean water and air ? as if they were free. Only new
patterns of consumption and production ? a new economic model ? can
address that most fundamental resource problem.
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