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The author correlates low growth with high inequality, that is, the money is being held at the top and if only it were redistributed to the middle, the growth f
by joshuaheard 10y ago
The author correlates low growth with high inequality, that is, the money is being held at the top and if only it were redistributed to the middle, the growth floodgates would open.
But look where else the growth is: emerging markets in the developing countries. So, the rich are not taking from the middle class, the middle class is losing its value to the developing countries. As low-friction information gets to developing countries, they are able to supplant the western middle class in the manufacturing and service sectors. This problem will be exacerbated as western businesses continue to automate.
The solution here is not protectionism or the stricter regulation of markets, but is for the western middle class to adapt to the changing paradigm. How to do that is the essential policy question.