He points out that the current economic system provides rewards to individuals managing money that is not in proper proportion to the individuals benefit to society. The ratio of CEO pay to the median pay of workers has doubled since the 1970's.
As noted in Linked, income inequality is based on a power curve. When rules are applied to a random system, some individuals are quicker to understand the rules of the game or are able to write the rules to benefit themselves.
Mr. Stiglitz advocates raising the maximum tax rate and keeping the inheritance tax on the upper income earners. The interest rate on student loans should be much lower because banks do not have any risk associated with the loan because the loan is one of the few that are not severable in bankruptcy. This should give loan co-signers pause.
It is interesting to note that many of the founders of a company (Microsoft) that Mr. Stiglitz suggests engaged in monopolistic behaviors are also people who run some of the largest charitable foundations like the Bill and Melinda Gates Foundation. There is also a club that billionaires can join if they make a promise to give away more than 1/2 their fortune through The Giving Pledge.
For those who want to join the one percent, not break a sweat and play by the current rules. How to get rich in America? It is almost impossible to get into the the top 1% in income by actually doing productive work according to John Macintosh's Satirical comment on Income Inequality in America. John writes a letter to a son he never had about how to move into the top 1% in income. You need to find a job that allows you to benefit from managing other people's capital preferably more than $100 million. Skim off one to three percent annually for management and you are set.
89 minute lecture
22 minutes - reform tax code to improve economy
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