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00:00If you wrote globalization and its discontents today what would be different. I think when I wrote globalization and discontent I was mostly focused on the discontent in the south in the developing countries and emerging markets. Since then that discontent has become global. We've had globalization of global discontent. And I think part of the reason is that we've seen that globalization has left us in the United States unprepared for the Covid-19. We weren't able to produce even simple things like face masks protective gear complicated things. And now this broader discontent of globalization that I talked about with emerging markets in developing countries is showing up in a peculiar way in the lack of support for the West. For United States and Europe and other democracies in the world are our position against Russia's invasion of Ukraine. Well before we get to that though is the inflation that we're seeing right now a symptom of these fissures. Have these crises whether it's Russia and the war in Ukraine or the lockdowns in China. Or is it just an exasperation of a deep globalization. Or are we globalization a new form that people haven't fully understood yet. Will the disturbances are to a large extent a reflection of the same kind of shortsightedness failure of markets to attend to risk adequately that we saw in the 2008 crisis. I wrote my book Making Globalization Work the sequel to Globalization Discontent that it was extraordinarily risky for a jury to become so dependent on Russian gas. It was so clear back then that Russia was not a reliable trade partner. Why would you put all your money in all your eggs in that basket. And yet Germany did. Europe did. And part of what we're seeing now because we didn't respond to climate change you had Senator Kerry here a few minutes ago talking about this. We should have we should have moved to renewable energy by realizing that it was more reliable than political dictators. So fast forward to today and the policies that were implementing whether it's to try to curb Russia and to hamper them in their advance in Ukraine or whether it comes to tariffs in China. What are we getting wrong. Oh I think we're not getting enough solidarity. We're asking a few countries. They may have made mistakes in the future in the past but now we have to have solidarity. We're fighting a war right now. It's a global war. It's a war to preserve the international rule of law. And yet we're asking some of the poorest countries to bear to bear a lot of the price in terms of higher food prices. They may starve. We're not doing anything about the debt crisis. So in terms of managing a global alliance we're fighting. Joe you came out of Gary Indiana is flat on its back like no other city in the country. The red occurs. Two academics writing in foreign affairs talk about the initiatives forward where hey the fancy people maybe ought to pay attention to the middle class. How in this new America do we get the elites to join with a middle class like they did when you and I grew up. Well I think that we all need to be aware our democracy is at risk and our system of economic system is at risk. So if we don't get that kind of solidarity who knows where things will go. So do you talked a little bit before about inflation. It's really hurting the people at the bottom in the middle. Enormously. There are oil companies making billions of dollars. You say well you know I fought this battle in 1976. He had a VW rabbit. You would've loved it. Joe the bottom line is the elites have forgotten the middle class across the entire political persuasion. How do we re-engage and build a trust with the middle class in America. Given the present shocks here in a Happy Valley I think that we have to remind them as I did prior article I wrote eleven years ago of the 1 percent for. Percent owned by the 1 percent. Part of the message of that article in Vanity Fair was to say that it is in your own self-interest to show more solidarity because if you don't want this whole system is going to fray apart. Also this was this is important. They're really important given the years and when you and Rogoff were on stage here that honor when the two haven't gotten along for years. It's like the Kurdish. It's worse than that. Here's the heart of the matter. We had compensation structures in America where the middle class was attached to the elites and then we changed it to where the elites are making more money than God and the middle class is left. Fine. And to me that was the tipping point. This has been a tipping point. Here we are with a new tipping point with inflation. And just want to end here. Do you think that it's more important to get inflation under control at this moment than to worry about or avoid some sort of downturn which seems to be the Fed's conundrum of raising interest rates is not going to solve the problem. Inflation is not going to create more food. He's going to make it more difficult because you weren't going to be able to make the investment. How do you rate the market. If you don't raise interest rates what you do is you have supply side interventions. One of the things that President Biden tried to do is to have more care for children and that would mean more women into the labor force. That release is one of the constraints labor supply. You look at we used to have surpluses and food in the United States. All this time you can get those back. How do we do this in a tight united way. I think we can do a lot more than we're doing. Can you get the economy through. Raising interest rates is not going to be allocation at any time frame. So at least trying to do everything we can globally to increase the supply is going to do more on dealing with one causing a depression. One last question. Your heated rhetoric melted all the snow in the valley. Let's go. I'll Scoop Jackson on your right now the giant from Washington state. Can you as a raging Democrat support a fiscal rebuilding of our defense and of our navy to push against China and the shock of Putin and Russia. I think we can have support defense. We clearly Putin is shown we need defense. Much of what we spend is weapons that don't work against enemies that don't exist. So if we take our current spending on defense and re-examine it. I mean we're pay we're so much back in the 20th century the latter half of the 20th century we're in we're a world of cyber warfare of all kinds of new forms of warfare. We need to adapt our our military expenditure. I think if we did that we don't have to spend more and more and more. We'd spend smarter and smarter smarter.

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Stiglitz Says Raising Interest Rates Won’t Fix Inflation Problem

Columbia University Professor Joseph Stiglitz says the problem of surging global inflation will not be resolved with interest rate hikes alone. “Raising interest rates is not gonna to solve the problem of inflation, it’s not gonna create more food," Stiglitz says at the World Economic Forum’s annual meeting in Davos, Switzerland on "Bloomberg Surveillance" (Source: Bloomberg)

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