The Main Thesis
Stiglitz's thesis says economic inequality is a result of these two kinds of systems.
Political and economic systems
Capturing a larger share of existing wealth through political influence and market power, instead of creating new value.
Rent seeking
Stiglitz's first tax fix: make the tax system more this, and close the loopholes.
Progressive (more progressive taxation)
Over the past 30 years, wages for the bottom 90 percent rose only about 15 percent, while the income of this group rose about 150 percent.
The top 1 percent
During the 2008 financial crisis, big banks received these from the government, while homeowners, workers, and taxpayers carried much of the risk.
Bailouts
To keep wealth and political influence from concentrating across generations, Stiglitz would strengthen these two taxes.
Inheritance and estate taxes
A growing economy does not automatically do this for everyone.
Improve everyone's standard of living
In this key example, the government leases public land to oil and gas companies and grants extraction rights at prices below their real value.
Natural resource giveaways
Workers' bargaining power grows when the minimum wage rises and these organizations get stronger.
Unions