The Guardian view on the inequality emergency: why a Nobel prize winner’s warning must be heeded | Editorial
In a world increasingly defined by stark economic divides, Nobel laureate Joseph Stiglitz warns that rising inequality is not merely a local issue but a global crisis that threatens the very fabric of societies and democracies. His recent insights, particularly highlighted in the G20’s inaugural inequality report, underscore the alarming trend where concentrated wealth, exemplified by the lavish gifts given to Donald Trump by Swiss tycoons, can directly influence policy decisions. This incident serves as a microcosm of a broader problem: as wealth becomes more concentrated, the power dynamics shift, allowing the elite to manipulate political landscapes to their advantage. Stiglitz argues that if current trends continue, such practices could become normalized, exacerbating the “inequality emergency” that he believes is a human-made disaster.
Stiglitz’s analysis reveals that the issue of inequality transcends borders, with a staggering 90% of the global population living in conditions deemed by the World Bank as high income inequality. Notably, the United States stands out as the most unequal nation in the G7, closely followed by the United Kingdom. This growing divide is not just an economic issue; it has profound implications for social cohesion and political accountability. As traditional defenders of the current economic system struggle to justify its increasing disparities, Stiglitz calls for a comprehensive rethinking of global economic frameworks. His proposed blueprint aims to foster equitable growth and restore accountability across nations, particularly emphasizing the need for collaboration among European, African, and middle-income countries. By addressing the root causes of inequality, Stiglitz advocates for a renewed global economic model that prioritizes fairness and inclusivity, which is essential for sustainable development and social stability in the future.
Rising economic division is destabilising nations and eroding accountability. Joseph Stiglitz’s G20 blueprint offers a way toward global economic renewal
When
Swiss tycoons
handed Donald Trump a gold bar and a Rolex watch – gifts that were followed by a cut in US tariffs – it was no diplomatic nicety. It was a reminder of how concentrated wealth seems to buy access and bend policy. It may, alarmingly, become the norm if the global “inequality emergency” continues. That’s the message of the most recent work by the Nobel laureate
Joseph Stiglitz
. The economist sees the
yawning gap
between rich and poor as a human-made crisis which is destroying politics, society and the planet. He’s not wrong.
The problem is no longer confined to a few fragile states. It is a global harm, with 90% of the world’s population living under the World Bank’s definition of “high income inequality”. The US sits just below that threshold and is the most unequal country in the G7, followed by the UK. Prof Stiglitz’s insight is that the current system’s defenders can no longer explain its mounting anomalies. Hence he wants a new framework to replace it. His blueprint for change is contained within the G20’s
first-ever inequality report
, endorsed by key
European, African and middle-income
nations.
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