In Joseph E. Stiglitz’s “Of the 1%, by the 1%, for the 1%”, Stiglitz introduces his topic on the economic inequality in the United States by showing how the rich keep getting richer and the poor keep getting poorer. He brings up the “marginal-productivity theory” which claims that those who make more are more likely to have “higher productivity and a greater contribution to society” (747). He then comments on the fallacy that the size of the economic “pie” is more important than how the pie is divided or distributed (747). Last, he makes this claim: “An economy in which most citizens are doing worse year after year–an economy like America’s–is not likely to do well over the long haul” (747).
Respond to each of Stiglitz’s ideas in his introduction, commenting on each one’s validity and effectiveness:
1. Marginal-productive theory as invalid
2. Fallacy of the size of the economic pie as more important than its division
3. Claim that the 99%’s worsening state will adversely affect the economy in the long term