OK, enough with the Obamamania already. I have a major bone to pick with our all-praised president-elect. Where, Mr. Obama, is Joseph Stiglitz? Most pundits have pretty much gone ga-ga over your economic team: The brilliant Larry Summers as head of your National Economic Council. The judicious Tim Geithner as Treasury secretary. The august Paul Volcker as chair of the newly formed Economic Recovery Advisory Board. But lost amid the cascades of ticker tape is the fact that, astonishingly, you didn't hire the one expert who's been right about the financial crisis all along—and whose Nobel Prize-winning ideas will probably be most central to fixing the global economy.I had the pleasure of meeting, and interviewing, Stiglitz in Greece this summer. Amazing man. And amazingly correct. You guys would LOVE him. I talked to Stiglitz for about 20 minutes, about everything economic. You watch can watch the videos here, I highly recommend it:
This is not speculation. A source close to Stiglitz told me Thursday that the Columbia University economist has been left out in the cold, even though he was expecting at least an offer. (Stiglitz, traveling in Brazil, could not be reached.) Especially since Stiglitz supported Obama long before most of the others named to his cabinet (at a time when Summers was a key advisor to Hillary Clinton). "Who knows why? Obama has been choosing center-right people," said the source, an associate of Stiglitz's who would speak only on condition of anonymity. She went on to say that Stiglitz's long-time enmity with Summers—whose ideas, Obama said last week, "will be the foundation of all my economic policies"—may be a factor. "Larry's had it in for Joe for decades," she said.
No surprise there. Stiglitz, more than anyone on the Washington scene, was the biggest fly in the ointment of "free-market fundamentalism" pressed on the world in the '90s by Summers, Geithner and their mentor, former Treasury secretary Robert Rubin—advice that has now contributed to the worst financial crisis since the Great Depression. It's not just that Stiglitz's Nobel-winning work, building on John Maynard Keynes's insights, uncovered profound fallacies in the Reagan-era idea that markets, especially in finance, can always correct themselves (good call, Nobel committee). In his writings and speeches since serving as chairman of Bill Clinton's Council of Economic Advisors and then chief economist of the World Bank, Stiglitz has been the leading voice opposed to the mindless liberalization of capital flows that brought us to where we are today.
Stiglitz interview Part 1, Part 2, and Part 3.
Here's the first part of the interview:
