When you have corporations having a very short-sighted view, paying their CEOs such outrageous monies with less money spent on investment, of course you’re not going to make long-term investments that are going to result in long-term economic growth.
And at the same time, there’s going to be less money to pay for ordinary workers. And paying that low wages to ordinary workers, not giving them security, not giving them paid, you know, family leave, all that results in a less productive labor force.
So what we’ve done is we’ve actually undermined investments in people, investments in the corporation, all for the sake of increasing the income of the people at the very top. So there’s a really close link here between the growing inequality in our society and the weak economic performance.”
Stiglitz tends to excuse Obama at some point and blames the Republicans, I think he is being naive at best, wrong-headedly kind perhaps to one of the worst betrayals of a public mandate for reform in American history.
Obama is, at the end of the day, a corporate brand, a clever vehicle to attract and divert reform-hungry Americans who are tired of being misused and lied to. He has betrayed his supporters at every key turn and on every major political and social issue from financial reform to healthcare.