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Rewriting The Economy

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In the book Rewriting the Rules of the American Economy written by Joseph E. Stiglitz, is able to capture the attention of the reader by bringing the problems with the economy to light as he also discusses the solutions that can help restore the economy. I think the problems that are very prominent in The US’s economy today are so unsatisfactory that as a society it is easy to be very aware of what is going on. The United States has always been thought of as this great and equal country where people have always wanted to live because of this big idea that comes along with living in The United States. The big idea that the land of the free also offers people this chance at The American Dream. Sometimes this idea does not always come true. Instead …show more content…

As Stiglitz describes the job of the financial sector is to “manage risk, allocating capital efficiency, intermediating between savers and investors, providing funds for job creation”(Stiglitz108). There are even more aspects to the job of financial sectors that need to be fulfilled, but the point is that these jobs that are supposed to be getting done are so influential to our economy. Job creation for example is extremely important to the growth of our economy. It will only make more money and more opportunities and can only be helpful to our economy and all the other aspects can also help create a better economy. However, the financial sector that is supposed to be making all of this happen is actually not taking on the jobs that are supposed to get done. Stiglitz says that the financial sector failing to do the job just like we have seen it do, it allows the economy to fail in other ways such as “poorer economic performance” and “lower growth and more instability”(Stiglitz 108). There is so much more to the financial sector than just job growth and the other aspects of the job that are supposed to be getting done. The other aspects are also important and there are positive outcomes from a reformed financial sector that will include a much healthier economy. The economy needs to be stable without so much inequality and without so many unequal opportunities including social mobility. That means that there needs to be opportunities for the middle class that can be attainable for everyone. When we have actual equal opportunities that allows the class system to be achievable and that is when the system will be successful. Stiglitz reassures us that he has a plan laid out of what can specifically be done to reform and bring change. He refers to specific changes to the increased financial market transparency, makes a more efficient payment mechanism by

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