Western Capitalism’s Ideological Crisis

The financial crisis should have taught Americans a lesson about the need for stronger regulation. But a resurgence of right-wing ideology in the United States is threatening global economies.
Joseph E. Stiglitz |  July 19, 2011
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Just a few years ago, a powerful ideology — the belief in free and unfettered markets — brought the world to the brink of ruin. Even in its heyday, from the early 1980s until 2007, American-style deregulated capitalism brought greater material well-being only to the very richest in the richest country of the world. Indeed, over the course of this ideology’s 30-year ascendance, most Americans saw their incomes decline or stagnate year after year.

Moreover, output growth in the United States was not economically sustainable. With so much of US national income going to so few, growth could continue only through consumption financed by a mounting pile of debt.

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