While rising inequality – a problem that the data suggest is real but overstated – has moved to the center of public debate, the key issue is that living standards are not improving fast enough among those who are falling behind. It is this fact that is fueling much of the political tension across advanced economies today.
STANFORD – December is usually a time for looking back on the past year and forward to the year ahead. In 2019, we have witnessed rising political extremism (on both the left and right) and polarization, increased government instability, and growing tensions between central and subnational governments. Each trend will continue in 2020. Almost everywhere one looks, there is a growing gap between what people demand of governments and what governments can deliver. The reasons vary, but a significant underlying cause explains many of the grievances: sluggish economic growth.
STANFORD – December is usually a time for looking back on the past year and forward to the year ahead. In 2019, we have witnessed rising political extremism (on both the left and right) and polarization, increased government instability, and growing tensions between central and subnational governments. Each trend will continue in 2020. Almost everywhere one looks, there is a growing gap between what people demand of governments and what governments can deliver. The reasons vary, but a significant underlying cause explains many of the grievances: sluggish economic growth.