Follow the link. Read the whole thing. I've included all the meat.
Stiglitz knows what is to be done. Mostly, he's right. What he wants might not be enough. But it would do more good than harm.
What he does not know is how to make his proposals happen. Like the politics of all liberals, his is a toothless musing, a vacuous fantasy.
He said it himself: "Greater economic inequality is leading, in our money-driven political system, to more political inequality, with weaker rules and deregulation causing still more economic inequality." This late-capitalism death spiral will not cure itself. There is no world in which corporations and their pet politicians and corrupt media propagandists will "recognize the vital role of the state." They will not regulate themselves. They will not create "a new social contract."
They are rich and powerful. The rich do not wake up one day and say to themselves, "Time to stop being a selfish ass, I'm going to redistribute my income." The powerful do not care that the weak are miserable.
Money gets taken away from the rich one way: by force. The powerful are divested of their privileges the same way: when they have no choice.
Liberals and leftists identify many of the same problems. Only leftists understand that real solutions require serious pressure on the ruling elites. The credible threat of force -- for example, a peaceful protest demonstration that could turn violent -- may be enough to force reforms. But reforms always get rolled back after the left stops watching. Ultimately the rulers will have to be removed via revolution, a process that requires violence.
Liberals do not demand change; they ask nicely. Because they oppose violence and credible threats of violence, they tacitly oppose fundamental change in the existing structure of politics and society. Unlike leftists they are unwilling to risk their petty privileges in order to obtain the reforms they claim to crave. So, when push comes to shove, liberals will ultimately sell out their radical allies to the powers that be. And they will run away at the first sign of state oppression.
If you can't trust your ally, they are no ally at all.