Joseph Stiglitz: Inequality an Equal Concern for China, U.S.

Both countries pay a price for their wealth gaps, the Nobel-winning economist says, something that should worry Chinese and American policymakers alike

By staff reporter Wang Liwei

Caixin Online - April 1, 2014

(Beijing) – Countries will pay high price for their social inequality, both economically and politically, says economist Joseph Stiglitz.
The Nobel laureate argued in his latest bestseller The Price of Inequality that inequality will hinder dynamic economic growth, but more importantly, it will undermine the public's confidence in a country's institutions and erode trust in politicians.
China has done very well in poverty alleviation over the past three decades, Stiglitz told Caixin in an interview, but inequality has emerged because some have grown much wealthier than others.
Thus, instead of pursuing GDP growth, it is critical the Chinese government assess its economy by employment figures in order to create enough jobs. Other factors such as air quality should also be taken into account to ensure growth benefits the broader population, the 71-year-old economist says. He also suggested the Chinese government make more efforts to support research and education.

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