The Price for InequalitySummary

Indeed, Joseph E. Stiglitz is one of the most prominent writers on economics; the Nobel prize-winner explains the why the perception on the deregulations and the less-influential governments are not ideal for the government and ideally, such an idea is not a fact to be considered by most if not all Americans. In his book, "The price of Inequality" Stiglitz enforces the argument an argument that has existed in the U.S for centuries, specifically the economic gap between the wealthy and the low-class income earners. Stiglitz states that economics dictates the social issue of inequality; therefore, he identifies that the most significant element of bias and non-functional efficiency within a society is based on economic grounds. Additionally, he backs up his claims by determining that the 1 percent of the wealthy individuals in the U.S controls the 40 percent of the entire U.S wealth since they have access to the best houses, education, health service, and lifestyles.

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Additionally, Stiglitz identifies the increasing rate of inequality in the U.S is generated from the corrupt political and economic system; thus, creating more disparities to the social norms of the community. Also, with the failure or lack of integrity to hold corrupt bankers as well as wealthy individuals for their contribution towards the economic crises is a prime sign of the incident in the United States of America. With the current rate of inequality, Stiglitz believes that it has increased the prices of instability, minimized the production levels of the country, and undermined the democratic policies of society.

Moreover, Stiglitz believes that accountability to ensure a section of the U.S population suffering needs to be accounted for, primarily, by those who establish technology effects, selfish-gain, or absence of regulation need to be held accountable for all the misfortunes of the society. Furthermore, the esteemed author argues that inequality is as a by-product of culture and consumer exploitation; thus, it is majorly caused by monopoly authority. Unfortunately, he states that the ignorance of the U.S citizens towards the issue of inequality has reduced the nations ideal perception of big or great ideas since it has created nation that believes in the scramble for power through persuasion, misrepresentation, and framing; thus, affecting the ideal victory of using truth to fight for the right of the communities.

Critical Assessment

To Stiglitz's audience "The Price of Inequality" is a piece written to steer the good and the bad. First, Stiglitz discusses two essential points that are the roots of his main arguments, inequality established by both the rent seekers and financial institutions. Ideally, even though their two components are ideal, but the author grabs the opportunity to unveil how these two concepts enhance the idea of inequality. Rent seeking is a chapter of its own in Stiglitz's book "The Price of Inequality," and its essential role is illustrating the misallocation of wages; thus, resulting in inequality. Moreover, the concept of rent-seeking refers to the conflicts between the individual sector and the government and where both parties get involved in granting more privileges that leads to the inaccessibility of resources. In other words, the U.S government liaison with the private sector by providing them much monopoly power due to the interests of social interest by reducing the ideal will of choice; thus, securing the government's benefits by initiating the monopoly of violence.

There are several examples offered to explain as to why these social interests exist, such as. Patent rights, corporate welfare, and government subsidies among others. Nonetheless, the issue of rent seeking leads to problems such as competition erosion, in the case the market niche is involved. To some extent, the author extends his claims and understanding of rent-seeking by mentioning that most of the offenders it to circumvent the U.S policies. Therefore, all these benefits are obtained at the expense of others. According to Stiglitz, rent-seeking is like a policy that reinforces constraints by enduring that the legislation's decision making relates and favors the one percent of the U.S citizens. To some extent, it is used to oppose the policies or assume the power and role of the law by proving the rent seekers with the element of legitimacy. Such prospects can be used to distort the market by protecting it from the state.

Next, the financial sector analysis enhances the good and the bad especially on how the banking/financial sector is the key to increasing the rate of inequality within the U.S and given institutional role towards social interests. According to Stiglitz, the U.S history precisely between the 1970s and the 1980s established a nation full of financial inequality. He mentions that deregulation was the primary cause of the instability rates and it led to the banking leverage and fluctuations. Moreover, he states that the lending has no part to play in the inequality sector, but the monopolized value of the currency and the foreign currency competition for power and authority has declined the market an independent discipline and choice regarding credit allocations. Thus, leading to micro and macro finance consequences that directly relates to the price changes that affect the social preferences of the nation.

Argument

Moreover, Stiglitz claims that the increased marginal tax is one of the main issues affecting the social prospects of the nation. According to his analysis, high tax margins enhances on labor supply and expenditure of the citizens. In other words, the ideal argument within the book is Stiglitz's obsession with the high rates of income inequalities within the U.S than that of the commercial signs. First, he overcomes and agrees with the argument that high-income rates never align or support social interest, since higher incomes are contributors to the social, political, and economic crisis. Second, he argues that higher salaries relate directly to financial intermediation that is a process aligned to help and save a section of investors and the government at large by ignoring the social complexity within the nation. Ideally, he gets back to analyze the social complexity as one that has brought about much suffering to the society since most of the minority is affected, but due to their less influence, they are not at liberty to fight for their democratic rights.

Recommendation

With his ideal perception on social issues, it is perfect to face that the main focus of Stiglitz was to write about the effect of income inequality. One of the main ideas he proposed was that since higher salaries do not align with social interest, it is entirely possible to create a better law that would reduce that amount of irregularities in the U.S market structure, by imposing the reduction the ration of entrepreneurial failure. Additionally, the U.S citizens need to be made aware of how much their ignorance towards inequality costs them, especially, the low and middle-income earners.