Tag Archives: inequality

Most important, after a 40-year period in which capital has won out decisively over labor, there is much likelihood that global economic policy is to shift back in a much less business-friendly direction. Not only will that weigh on economic growth, but it’s also likely to push inflation higher. And that’s something markets are not currently prepared for. FinenewsDarren Williams: «How Populism Affects Our Business» Darren Williams | Global Economic Research Group for Fixed Income

Labor’s share of national income—that is, the amount of GDP paid out in wages, salaries, and benefits—has been declining in developed and, to a lesser extent, emerging economies since the 1980s. This has raised concerns about slowing income growth, inequality, and loss of the consumer purchasing power that is needed to fuel demand in the economy. The decline has been much discussed and the rising power of companies vis-à-vis workers—whether from new technology, globalization, the hollowing...

Trade in intermediates (or ‘unbundling of production') and trade in capital have become increasingly important in last 25 years. This column shows that trade in intermediates generates a reallocation of capital across countries that exacerbates world inequality in both income and welfare. Unbundling of production hurts middle-income countries but helps those with high productivity. Trade in intermediates also increases within-country inequality, and this increase is U-shaped in the...

I can't stop looking at this table. Mortality rates in England rose between 2011-16 for teenagers and most working-age adults under 50: That's bad enough. But what should give all of us pause is the reason that Public Health England (PHE) gives for rising mortality among young and middle-aged adults: Among people aged 20-44, an increase in mortality rates from accidental poisoning had a negative effect on life expectancy between 2011 and 2016 of -0.06 years in males and -0.11 years in...

A wealth tax is not needed to "pay for" anything, since the US funds itself directly using currency issuance. That is, the US is a currency issuer rather than a user of currency.  The purpose of taxation is to: control for inflation  discourage taxed behavior  address social needs A wealth tax would address 2 and 3. Regarding 2, the negative behavior being discouraged is rent-seeking and a wealth tax would serve to preempt rent extraction. Regarding 3,  the social need being addressed...

After 40 years of market fundamentalism, America and like-minded European countries are failing the vast majority of their citizens. At this point, only a new social contract – guaranteeing citizens health care, education, retirement security, affordable housing, and decent work for decent pay – can save capitalism and liberal democracy. Three years ago, US President Donald Trump’s election and the United Kingdom’s Brexit referendum confirmed what those of us who have long studied income...

I’ve written a blog post about what the recent federal budget means for Canada’s housing market. Points I make in the blog post include the following: -The budget contains several initiatives designed to make it easier for households of modest means to become homeowners. -Such initiatives are often framed as being win-win propositions, while their unintended consequences are rarely discussed. The link to the full blog post is here. Enjoy and share:

I’ve written a blog post about what the recent federal budget means for Canada’s housing market. Points I make in the blog post include the following: -The budget contains several initiatives designed to make it easier for households of modest means to become homeowners. -Such initiatives are often framed as being win-win propositions, while their unintended consequences are rarely discussed. The link to the full blog post is here. Nick Falvo is a...

Is Wall Street getting the message that "capitalism" is not working in that prioritizing capital over the rest of the factors of production is resulting in not only economic issues but also social dysfunctionality and political polarization? This is also affecting US foreign policy adversely as the American leadership forces "capitalism" on the rest of the world regardless of other considerations, leading to a breakdown of globalization, a diminishment of world trade, and increasing...

ht Real World Economic Review