Sunday, May 27, 2007

The Roaring Nineties - Joseph Stiglitz

I have just finished reading this amazing book on the economics of the nineties and the new millenium by Joseph Stiglitz. Stiglitz is the winner of Nobel Prize for economics and have been involved in the direction and policy decisions of the Clinton administration and have the real insiders view of the things that shaped up.

Stiglitz looks at all the things that helped America to witness one of the strongest decade in the history in terms of Economic growth and looks at the underlying factors of this phenomenal growth. The decade after the initial recession, have shown the robust growth through out all parameters in the America , in terms of GDP , unemployment, revenue deficit.

The book examines in detail the rele of federal govt and the federal agencies in the economy and how does the policy decisions and plans helps the industry and the econimics of the country.

He is also critical of the follow up Governments and their popular tax cut, and how it had helped the rich to manipulate the system and reap money out of the investors pocket. He examines the events after the 2000, and teh collapse of the stock market , including the manipulation by the CEOs and the directors of the corporate , cheating the investors.

There is detailed analysis on the collapse of market and the industry with the example of Enron case study and tells us how , corporate greed , de-regulation, globalisation , corrput accounting practices can erase the lifetime savings of the workers and investors.

Stiglitz is also critical about America's policy abroad on globalisation. He sites examples on how America preaches to the world and does the opposite at home. The advantage America had as the only superpower in terms of Economy and Military streangth , used to create a unipolar world advocating the capitalist economy as practiced US -style. History gives us enought examples on how these have gone wrong in multiple countries and how the confidence of a US-led economy is eroding in the developing countries. Examples of Mexico, Argentina in the latin Americas, Korea , Thailand , Indonesia and Malaysia in the East, Russia and other commuist coutries in the Europe are there fopr all to see.

We have seen most of the post communist countries have elected the erstwhile communist back to power, the entire Latin America is now being ruled by leftist governments are giving us the indication that the US led globalisation policies are not being acceptable to many around the world.

While this is a book on US Economics and associated development around the world, it gives us enough insight on the different parameters of the financial matters. This biook is not written for the economic elite or students. This is meant for the common man and for someone who is keen to have a basic knowledge on the economics at the higher level.

I would say this book has enhanced my knowledge on the economics and the learning I had will defeintely improve my understanding of the global economics and politics to a significant amount.

The roaring Nineties
by Joseph Stiglitz
Penguin Books
346 pages

1 comment:

Anika said...

Well written article.