Brookings: Globalization, Technology, Inequality

People even in the world’s most advanced and wealthiest economies are unhappy and politically fractured – this despite a full recovery from the 2008 financial crisis and growing economies. “The increasingly unequal sharing of the economic pie lies at the heart of the rising social discontent,” explains Zia Qureshi for Brookings. “Income and wealth inequalities have risen practically in all major economies, and sharply in several of them.” Income for the wealthiest citizens continues to rise while middle-class incomes are mostly stagnant. Social mobility among classes is in decline. Leaders blame globalization and technology including automation. Government policies on taxation, education and market concentration could prevent the distribution of wealth funneled to a few, Qureshi writes, but political leaders hesitate and protect those with advantages. Attempts to block globalization or technical change would hurt reduce economic growth and hurt all. He concludes, “Rather than decry globalization, politicians should exert more to put national policy houses in order.” – YaleGlobal