Stiglitz the sceptic

Joseph Stiglitz, a Nobel laureate in economics, is one of the high priests of growth scepticism. The former economic adviser to President Bill Clinton and chief economist of the World Bank is also a leading influence on the anti-globalisation “movement”. In today’s Financial Times he argues that economic growth in the developed world may not be beneficial because it could lead to widening inequality:

“Unfettered globalisation actually has the potential to make many people in advanced countries worse off, even if economic growth increases.”

Not an original argument but a powerful one. The counter-argument is the need for even more growth so that everyone can benefit. Inequality should not be used as a justification for restraint on growth.

Stiglitz’s new book, Making Globalization Work, is published in Britain this month by Penguin.