Joseph E. Stiglitz, winner of the 2001 Nobel Prize in economics and a former member of the Council of Economic Advisers during the Clinton administration, visited Mississippi State University last week to give his presentation titled “Building a Better Economy.”
Stiglitz explained the economic crisis by comparing it to the layers of an onion – each question answered leaves another question.
“Economists define recession as a series of negative growth in terms of what is really happening to the broader economy; it’s measured by employment and we’re nowhere near the end,” he said.
College of Business Dean Lynne Richardson said the response to Stiglitz’s talk was incredible, with students staying after to ask questions and have pictures made with the world-renowned economist.
“We told him that he was like a rock star,” she said. “He said he gets this a lot, especially in Asian countries.”
Richardson said while she was unsure of the exact number attendees, the turnout was excellent and included not only students, but also campus and community leaders.
“The mayor and first lady of Starkville both attended,” she said.
International business director Brian Watkins said for those who follow finance and economics, it is often hard to gauge the amount of popular interest that will be generated by a speaker.
“With that uncertainty as a backdrop, we were pleasantly surprised to see the crowd swelling into the Lee Hall balcony,” Watkins said.
Richardson said Stiglitz also said in order for the economy to truly improve, it must progress at 3.5 percent to experience true growth.
“No one sees the economy growing at more than 1.5 percent in the next couple years, which means the job deficit will continue to grow,” he said.
Stiglitz also spoke about the education deficit. He said the unemployment rate among non-college graduates was higher than college graduates.
“Among those who aren’t college graduates one in five can’t get a full time job,” he said. “Community colleges are at full capacity, whereas it used to be that anyone who wanted to go could go.”
Stiglitz also spoke on the stimulus package, which he said was too small and not well designed.
“Cash for Clunkers was very inefficient,” he said. “You get GDP up in the summer at the expense of what would happen the following year.”
Watkins said a point that stuck with him was the important role of higher education in dealing with the longer-term economic transformations facing this country.
“I found it interesting to hear professor Stiglitz cite the establishment of land grant institutions such as MSU, both as an example of the positive role played by higher education in the past, and as a possible model moving forward,” he said.
Watkins said whether or not one agrees with all of Stiglitz’s conclusions, having a guest with such a high level of expertise and a willingness to share thinking on demand was a great opportunity for MSU students.
Thomas Couch, senior risk management major, said he enjoyed Stiglitiz’s opinions and offerings, especially what he had to say on the issue of the current economic crisis.
“He provided a lot of in depth discussion in regard to what happened, what is currently happening, as well as what may eventually happen within the next two years,” he said.
Couch said Stiglitz put the crisis in perspective and discussed the magnitude and external factors which caused the current situation in such a way every student could understand.
“I think it provided a sobering experience for a lot of people who may not understand the scope of the crisis because college campuses tend to distort what is happening elsewhere in the world,” he said. “At the same time, it is important for Americans to be resilient and confident in overcoming these tough times.”
He said visitors like Stiglitz help stimulate important discussion among students.
“It obviously gives the students and faculty, as well as the community exposure to topics and current events that can be applied in the classroom,” he said. “In the past two years, MSU has hosted speakers such as Colin Powell, Mike Huckabee, Spike Lee and Dr. Joseph Stiglitz, all of who are nationally well known individuals who have a plethora of knowledge to share.”