Food Crisis: The Moral Failure of Liberal Economists
Time was when writers lampooned economists for "knowing the price of everything but the value of nothing." Today, they seem to be unaware even of the price of things! By Aseem Shrivastava From Hardnews (Delhi, India) August 2008 (Original title: (Stiglitz and Sen: Profit and Pain") An economic transaction is a solved political problem. Economics has gained the title of queen of the social sciences by choosing solved political problems as its domain. — Abba Lerner Nobel economist Joseph Stiglitz has recently expressed his views on the ongoing food crisis around the world. Given his pre-eminence in the profession and his vast experience as an advisor to governments, his views deserve to be scrutinized carefully. The Stiglitz diagnosis Stiglitz traces the problem of inflation in food and energy prices around the world to the policies that have been enacted in the US and elsewhere during the past few decades. He finds fault with the massive financial deregulation and generous tax cuts