Nobel Prize winner Joseph Stiglitz's latest book, "The Road to Freedom: Economy and the Good Society," presents striking findings.
The book argues that neoliberal capitalism has failed to address the global problems and threats that have grown exponentially in the last decade and is now at a stage where it may directly self-destruct. The proponents of neoliberal capitalism, who assert that solutions can only come through the free market system, face significant obstacles. Stiglitz reminds us that a free market approach, where rules are abolished and the state relaxes regulations, leads only to chaos. He emphasizes that this approach, which prioritizes the freedom of a minority at the expense of the majority, also jeopardizes efforts toward an economy based on equality and being a good society.
Stating that the extreme free-market understanding means a world without limitations, Stiglitz emphasizes that an environment where only the "strongest in the jungle" determines who gets what and who does what is definitely not a market or a market economy. According to Stiglitz, the most important detail overlooked by the neoliberals who defend the free-market approach is that public interventions that will produce solutions to local economic problems and economic crises are never contrary to the market economy. On the contrary, society has democratic demands from the government for a collective capacity to respond. Stiglitz and economists who agree with him state that the understanding that has led to huge inequalities in the last 40 years and provided fertile ground for dangerous populists is neoliberal capitalism.
The dismal track record of neoliberal capitalism has triggered three major bottlenecks in the global economic system. Stiglitz identifies the first of these as the greatest financial crisis of the last three-quarters of a century, accelerated by extreme free-market ideology. The second bottleneck involves the acceleration of deindustrialization in developed and top developing countries and the dependency on supply chains caused by international trade. Lastly, he describes the third bottleneck as the establishment of an economic order that exploits the environment alongside the stakeholders of global production. Stiglitz emphasizes that this type of capitalism never promotes freedom; on the contrary, it undermines it, thereby complicating efforts to create a good society based on equality. This entire scenario not only leads to a process that moves away from efficiency in the name of the effective use of natural resources and inputs but also triggers a process that exacerbates the climate crisis.
A real market economy, where the public makes the rules and regulations inclusive and effectively implements them, is the most important basis for the expectations of equality and a good society. However, in the world's leading economies, neoliberal capitalism is shaking public confidence in the real market economy. In order for the economic system to function properly and for people to have confidence in the market economy, the most fundamental rule is for the public to strengthen and protect the rules of good behavior.
On the contrary, the extreme free-market mentality advocated by neoliberal capitalism has also triggered "greedflation" in 40 leading economies due to recklessly prioritized personal interests since the COVID-19 pandemic. According to Stiglitz, in Western societies, neoliberal capitalism helps to create selfish and untrustworthy people. Interviews with Stiglitz conducted by the world's leading universities and media organizations confirm that the book will be talked about a lot.
