The Road to Freedom: Economics and the Good Society, by Joseph Stiglitz

The esteemed economist and public policy analyst Joseph Stiglitz argues that we need rules and regulations in order to maximise freedom for all. 

Joseph Stiglitz, if he needs any introduction, is an American economist whose work mainly concentrates on bringing more fairness and equity to modern economies. The title of his latest book, The Road to Freedom, is a play on Friedrich Hayek’s hugely influential The Road to Serfdom (1944), which argued in favour of free markets and individual liberty. 

It was Hayek and American economist Milton Friedman who ushered in the age of neoliberalism, an economic philosophy (critics would say dogma) of no holds barred capitalism. Formidable politicians such as Margaret Thatcher and Ronald Reagan gave these ideas flesh and bone, implementing neoliberal policies. 

In The Road to Freedom, Stiglitz argues that unfettered freedom is a myth. One person’s liberty  impacts on the freedom of others. We need regulation and government intervention to ensure the utmost freedom for all, so wealth does not become too concentrated and the poorer in society not exploited. One of the basic premises of neoliberalism is that markets work with crystal clear transparency, a perfectly level playing field. But Stiglitz argues there are multiple power imbalances that corrupt outcomes and work towards consolidating wealth in the hands of the few. 

While The Road to Freedom is ostensibly a book on economics, it also deals with other interesting areas, such as how belief systems are formed and the internet’s ability to reinforce and entrench false narratives. This is a work of philosophy as much as it is one of economics. 

Impassioned, urgent and written in Stiglitz’s usual accessible style, The Road to Freedom explains why we cannot continue under the current system of extreme wealth to individuals and excessive power to corporations. A must read for all students of economics and politics.  

The Road to Freedom: Economics and the Good Society, by Joseph Stiglitz. Published by Allen Lane. $36.99

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