The paper "Joseph Stiglitz - Why We Have to Change Capitalism" is a great example of a management essay. The advent of the great recession set a host of debates on the modern-day world economies. Major economies underwent a major shakeup during the great recession. The slump exposed the various flaws that exist in the economies. At the same time, potential risks that were never seen before also became unearthed by the great recession. It is with the great recession that most economies in the world had a point in case to reevaluate themselves.
However, many economies wished the great recession away and downplayed the flaws that it elicited. In the book freefall, Stiglitzt reveals his fears about the modern-day economies in the world. The launch of the book freefall comes just after the world had undergone a great recession. It is from the great recession that various economies dwindled within a day with many people adding to the statistics of those living in poverty. The great recession could have been avoided if at all the stakeholders in the economy worked in synergy for the common good.
Despite the modern-day economy having liberalized markets, globalization and all advancements associated with it having guaranteed prosperity to all, it still lacked the very essential component which was better risk management. Lack of risk management within the modern-day economies meant that the business cycle was not complete hence the vulnerability of the economy to fluctuations was not eliminated (Astley et al 2009, p. 8). For a very long time, the economies of the world have been driven by principles of a free market. These principles have worked for many years.
However, times are changing and various faults have started to emerge in the economies managed by this doctrine. Most economies are not proactive in troubleshooting. Such economies do not have proper analytical capabilities to allow for the troubleshooting of potential risks that the economies are likely to face. This means that the economies are more than ever exposed to risks (Bauer et al 2009, p. 4).
Acharya, V, V, and M, Richardson, 2010, ‘Causes of the financial crisis’, Critical Review, Vol. 21, No. 2-3.
Astley, M, Giese, J, Hume, M, and C. Kubelec, 2009, ‘Global imbalances and the financial crisis’, Bank of England Quarterly Bulletin, 2009Q3.
Bauer, Paul and Michael, Shenk, 2009, “Productivity in the Recession and Going Forward.” Economic Trends, Federal Reserve Bank of Cleveland.
DeNavas-Walt, Carmen, Bernadette, D, Proctor, and Jessica C, Smith, 2010. “Income, Poverty, and Health Insurance Coverage in the United States: 2009.” Current Population Reports P60 238. Washington, DC: U.S. Census Bureau.
Garnaut, R, 2009, The Great Crash of 2008, Melbourne University Press, Clayton, VIC.
Posner, R, A, 2009, A Failure of Capitalism: The Crisis of ’08 and the Descent into Depression, Harvard University Press, Cambridge, Mass.
Rampell, C, 2009, ‘Great Recession: A Brief Etymology’, New York Times, March 11, 2009.
Shiller, R, J, 2008, The Subprime Solution: How Today’s Global Financial Crisis Happened, and What to Do about It, Princeton University Press, Princeton and Oxford.
Taylor, J, B, 2009, Getting Off Track: How Government Actions and Interventions Caused, Prolonged, and Worsened the Financial Crisis, Stanford, California: Hoover Institution.
Robert, M, 2009, The Great Recession, Lulu Enterprises Incorporated, p. 220-342.
David, B, Grusky, Bruce Western, Christopher Wimer, 2011. The Great Recession, Russell Sage Foundation, p.201-234.