Which statement best reflects Joseph Stiglitz's explanation for rising inequality?

Which statement best reflects Joseph Stiglitz's explanation for rising inequality?

• A. Tax policies have become more progressive.
• B. Wealthy control more high-status positions and can change the rules to benefit themselves.
• C. Education has become more accessible for all.
• D. Globalization has decreased profits.

Answer: (B)

Rising inequality, for Stiglitz, comes from power and policy shaping the economy, not just market forces. When the wealthy wield substantial influence over political and economic institutions, they can bend tax codes, regulation, and enforcement to preserve or expand their wealth and status. This ability to change the rules in their favor makes returns to capital and top incomes rise relative to others, producing a widening gap that can persist and grow. So the statement about the wealthy controlling more high‑status positions and changing the rules to benefit themselves best captures his explanation. The other ideas imply outcomes that would reduce inequality or attribute change to external forces, which isn’t his focus on how power and policy create the gap.

Rising inequality, for Stiglitz, comes from power and policy shaping the economy, not just market forces. When the wealthy wield substantial influence over political and economic institutions, they can bend tax codes, regulation, and enforcement to preserve or expand their wealth and status. This ability to change the rules in their favor makes returns to capital and top incomes rise relative to others, producing a widening gap that can persist and grow. So the statement about the wealthy controlling more high‑status positions and changing the rules to benefit themselves best captures his explanation. The other ideas imply outcomes that would reduce inequality or attribute change to external forces, which isn’t his focus on how power and policy create the gap.