The Most Misunderstood Man in America

A sidebar to this article in the print edition shows a continuum of economists from left (Karl Marx) to right (Milton Friedman). Also on the "far right" in the continuum is Alan Greenspan (he is called a "libertarian" in the sidebar).
With all due respect, this reporting is either ignorant, misleading, or both. To associate Friedman and especially Greenspan with truly free markets is just false. These men support government regulation of the one good at the heart of society: money and interest. The Austrian economists of the 20th century, such as Ludwig von Mises, Murray Rothbard, and others believed in free markets in money as well. These men would truly be on the right side of an accurate continuum. Today's followers of this line of economic thought include Ron Paul, Peter Schiff, Gary North, and others.
To Newsweek: please update with an accurate continuum. It is little wonder that most Americans have trouble understanding economics, and that many people blame capitalism and free markets for the problems actually caused by government intervention.

The problem in the world is, that there is too much difference, and more people do not work together. Mr Stiglitz is aware of the shortcomings of the economy, but who wants to bet, that the problems will be around, even after Mr Stiglitz has been heeded to? If Mr Stiglitz is the 'Kynes of twenty first century', then even after the existence of the original Kynes, the world is none the better. Only if there is cooperation in the financial sector, where there is no competition, will the lot of the customer be of importance. In my opinion, the financial sector should work like one big firm, where the advancement of one does not mean it is to the disadvantage of another. Everyone must work for the other. If the world is all right, then why do we see what we do see?

There's no reason why Joseph Stiglitz should be misunderstood. He believes the government should have kept the GLASS-STEAGALL ACT and there should be a balance between Commercial Banks and the Stock Market. The problem we've been having for years though is with the INVESTMENT BANKS, which have been trying to play BOTH SIDES OF THE STREET. Granted, the government let some of the Investment Banks go under, there's still two of the biggest ones left. Since Fed Chm Bernanke last fall allowed Goldman Sachs and Morgan Stanley to become Commercial Banks, he broke quite a few laws for them to do that and they are still up to their own SWITCHEROO TRICKS. Anything goes! Definitely not consevative but whoever is contributing the most campaign money usually rules. That's why the rich are pushing the 527 Groups around Washington and no one really knows how much money they're contributing to the politicians. Even though Joseph Stiglitz is 100% correct in what he's saying, they're not paying attention to him because, like the Supreme Court says, "Money is free speech." That's why you'll continually hear the Forbes 400 continually argue about who is the richest and that's why these individuals should pay a higher federal income tax "BASED ON ABILITY TO PAY." 60% on the wealthiest 1% and 45% on the top 2%. These people think they can run an economy without unions and a fair wage. They're even against a minimum wage. They're so dumb that they've never considered the fact that if we don't get a fair wage, so first we can at least exist, with adequate food and housing, after that, we have to have some left over to buy their merchandise, which is something Henry Ford said years ago when he manufactured the Model A and the Model T Ford. He was going to pay them $5.00 an hour so they can buy his car.
Yours truly, Disgusted Middle Class Taxpayer, Public Citizen and AARP Member, LaVern Isely

From a student of mine: Oh, did you notice the omission typo in the last sentence? Shouldn't there be the word "be" in there between "may" and "a"?

Accorng to Various Chinese medias,Sun DanYong,a employer of Foxcom which manufacture iPhone for Apple,was suicide on july 16 3:33 A.M.As Chinese media puts it Sun was suicided beacause of being suspected stolen a iPhone which was supposed to be send 16 to Sun but only 15 reached him.Sun was said to be tortured and illegally detained.THis may be the new evidence of tycoon breaching human rights in a alien place. reported by maxwill for XXX.

By definition, markets don't fail. Markets simply reflect the aggregate demand for a given product, at a given price. People losing money is not a market failure. Government programs that push financial institutions to make subprime loans to people that the loaning institution KNOW won't be able to pay, has nothing to do with Adam Smith's version of market economies. It is always fun to blame the "greedy" Wall Street crowd whenever the economy goes south, but we never seem to give any credit to the negative impact that government meddling has with the economy. The US does not have a free market economy. It is only a quasi free economy.

Because he's not with Goldman Sachs. The rest of the country is on rice and beans and some overrated investment brokers who's job is really pointless(if you really think about it), make 3.4 billions of dollars from just April to June. Thank the US Treasury for that one since most of thier profit is from our tax-dollars. God Bless America and the "power elite," they're doing such a great job. So much for Democrats looking out for the "average" citizen!

PS Someone from Goldman Sachs please let us know what it's like to be so greedy and soul-less, do you just around and think of ways ***-over your fellow citizens and scam tax-dollars? I hope you make alot of money because your life is meaningless.........

This one's too easy - Stiglitz is ignored by DC because he is not part of the Goldman Sachs Mafia!

In the imortal words of Lennie and Motorhead.., "EAT THE RICH"!!!!

Stiglitz sounds to me like a typical college professor, anti-capitalist, socialist jerk !

Results speak louder than words. Since 1980, the economic policies of the US has been dominated by reckless deregulation and ???market??? principles. Regulations on savings and loans, commercial and investment banks, derivative trading, commodity trading and securitization were either greatly diminished, unenforced or unregulated all together. The results? The 1980s collapse of the entire S&L industry requiring billions in bailout by the government. The 2008 collapse of the financial markets and TRILLIONS in government bailouts. Oil and other commodity prices seesawing two or five fold in mere months, inflicting pain and even death around the world.

Stiglitz is right. Successful, enduring, noble civilizations have never lasted without sound, central oversight of important economic functions to meet the common good. This is not an endorsement of totalitarian control and inefficiencies like the old Soviet Union and Maoist China. This is an advocation of the reasonable balance between free enterprise and the boundaries of public interest. Fine tuning this balance is imperfect and hard work, but it is essential. Economies that get the balance right on both sides generally endure and thrive, those who err too much either way generally fail.

Conservatives decry this as the slippery slope to socialism. They fail to acknowledge that absolutism cuts both ways. Total deregulation and lack of social conscious can be the pathway to despotic dictatorship. After all, one could say Genghis Khan and Adolph Hitler were ultimate free marketers. They had the savvy to build their empire by acquiring the resources necessary to dominate the markets they entered, unencumbered by regulation or sense of public interest. In this regard, they would be the epitome of laissez-faire economics.

"The subprime-mortgage disaster was almost tailor-made evidence that financial markets often fail without rigorous government supervision, Stiglitz and his allies say."

Give me a break, it wasn't Federal Reseverve monetary policy, congressional mandates, GSEs Freddie and Fannie backing of subprime loans that fostered the risky loan behaviors that led to the bubble and utlimate burst. Stiglitz is nothing more than Keynes warmed over.

"The subprime-mortgage disaster was almost tailor-made evidence that financial markets often fail without rigorous government supervision, Stiglitz and his allies say."

Give me a break, it wasn't Federal Reseverve monetary policy, congressional mandates, GSEs Freddie and Fannie backing of subprime loans that fostered the risky loan behaviors that led to the bubble and utlimate burst. Stiglitz is nothing more than Keynes warmed over.

Somrthing tells me that the asians know a thing or two here...we should be listening to this guy more.