Joseph Stiglitz Urges U.S. Banks to Return to Lending

The video discusses the challenges small businesses face in accessing capital, contrasting their struggles with large corporations like Apple. It highlights the shift in banking focus from local to more lucrative activities like derivatives trading. The discussion includes the role of economists in policy-making and the importance of government support in innovation. The speaker calls for a new social contract to restore balance between the market, government, and civil society, especially in light of the pandemic's challenges.

What has been a major shift in banks' focus over the last 30 years?

• Issuing more derivatives and trading commodities

• Expanding branch networks

• Increasing interest rates for loans

• Lending more to small businesses

What trend has been observed with regional banks recently?

• Increasing their lending to small businesses

• Offering lower interest rates

• Pulling back on credit

• Opening more branches

How have innovations that contributed to U.S. success been supported?

• Through non-profit organizations

• Through private sector investments

• By government support

• By international collaborations

What balance does the speaker argue has been lost since Reagan's era?

• Balance between market, government, and civil society

• Balance between different industries

• Balance between urban and rural development

• Balance between imports and exports

What does the speaker suggest is needed in light of recent government failures?

• A new economic theory

• Increased globalization

• A new social contract

• More private sector involvement