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

Brookings: Globalization, Technology, Inequality

Visible inequality heightens political polarization and unhappiness – the answer is in plain sight with policies on education and taxes and not protectionism
Zia Qureshi
Thursday, February 22, 2018

Read the article from Brookings.

Zia Qureshi is a nonresident senior fellow in the Global Economy and Development program at the Brookings Institution. His research and commentary cover global economic issues and emerging market economies. He has 35 years of experience at the World Bank and the IMF (six at the IMF and then 29 at the Bank). His last position at the Bank was Director of Strategy and Operations in the Office of the Senior Vice President and Chief Economist, where he oversaw a large program of research and policy work on the global economy and assessment of the Bank’s country programs and operational policies.

Copyright 2018 The Brookings Institution

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