Today, Nobel laureate Joseph Stiglitz, the Columbia professor and former economic advisor to Bill Clinton, [published] a new report for the Roosevelt Institute entitled “Rewriting the Rules,” which is basically a roadmap for what many progressives would like to see happen policy wise over the next four years.
Eight “fixes” and PBI commentary below the fold.
1. Fix the Financial Sector
2. Incentivize Long-Term Business Growth
3. Make Markets Competitive
4. Rebalance the Tax and Transfer System
5. Make Full Employment the Goal
6. Empower Workers
7. Expand Access to Labor Markets and Opportunities for Advancement
8. Expand Economic Security and Opportunity
Phi Beta Iota: The report, while valuable for discussion purposes, is a panacea and completely avoids the fundamentals such as restoring integrity to the electoral process, governance, and thence to the economy and society. There is no mention of need to migrate toward a government, economy, and society rooted in holistic analytics, true cost economics, or open source everything engineering. Joseph Stiglitz remains our choice for Director of the Office of Management and Budget (OMB) in a new honest coalition government, but he is clearly trapped in a legacy paradigm — this report puts lipstick on the pig, it does not kill the pig. Any effort devoted to the whole would place the well-being of the 99% including the 5 billion poor foremost, and would focus on assuring free energy, unlimited clean water, healthy food, shelter, guaranteed education and communications, and an end to the 50% waste characteristic of the corrupt corporate system that thrives under dictatorships and two-party tyranny today. Stiglitz has produced a 10% solution, nowhere near a 50% to 100% solution. As Dr. Russell Ackoff would put it, the illustrious Dr. Stiglitz is doing the wrong things righter, not the right things.
“The righter we do the wrong thing, the wronger we become. When we make a mistake doing the wrong thing and correct it, we become wronger. When we make a mistake doing the right thing and correct it, we become righter. Therefore, it is better to do the right thing wrong than the wrong thing right. This is very significant because almost every problem confronting our society is a result of the fact that our public policy makers are doing the wrong things and are trying to do them righter.” (Ackoff 2004)