For sometime now rhetoric has centered on the fact that the top strata of American society has too much wealth and there’s too little at the bottom.
Joseph Stiglitz was on CNBC saying he wouldn’t use the word too much and would instead focus on how this wealth originates. What followed for the most part was a heated debate between Stiglitz and Squawk Box co-host Joe Kernen.
Stiglitz picked apart many of CNBC co-host Joe Kernen’s Squawk memes including government role in retirement, the role of government in industries like the post office and banking and the lack of incentive in government to innovate.
The best moment however came when Kernen said the age old argument for a collectivist society hasn’t worked, and that things don’t work when they’re just done for the good of society. From Stiglitz:
“You don’t have this kind of simple model of 19th century capitalism that you have in your mind. One of the problems we’re talking about, rents, is that we have large corporations where the CEOs often run the corporation for the benefit of them and their group around them and not for the benefit of the shareholders. That’s 2 1st century capitalism.
…But a lot of our capitalism is crony capitalism. You look at what happened in the banks, the executives did very well, the shareholders have done miserably and that’s the capitalism of the 21st century.”
Watch Stiglitz take on Kernen: