Föhrenbergkreis Finanzwirtschaft

Unkonventionelle Lösungen für eine zukunftsfähige Gesellschaft

Posts Tagged ‘Inequality’

Getting the Inequality We Want

Posted by hkarner - 7. Mai 2018

Roland Kupers

Roland Kupers is an adviser on complexity, resilience, and energy transition, and is associated with the Institute of Advanced Studies in Amsterdam.

Far from establishing – or even debating – a specific level to which to reduce inequality, politicians continue to allow it to rise. This will change only when policymakers treat inequality more like GDP growth, health care, or climate-change mitigation: as the subject of serious debate and concrete action.

AMSTERDAM – Everyone, it seems, is talking about inequality. Media outlets publish article after article on the topic. Politicians include it in their speeches and platforms. Yet, even though economists like Thomas Piketty and Joseph E. Stiglitz have proved, through meticulous research, the causal link between inequality and policy choices, politicians have yet to establish what level of inequality they consider ideal.

Eliminating inequality, after all, is not the point. Too much inequality impedes social mobility, thereby potentially stoking political instability; as Stiglitz has often pointed out, it also tends to lead to weaker economic performance. Yet some amount of inequality is vital to create appropriate incentives, support competition, and provide reasonable rewards. That is why it is important to define what level of inequality is fair, and work actively to achieve it. Den Rest des Beitrags lesen »

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Financial inclusion in the rich world

Posted by hkarner - 4. Mai 2018

Date: 03-05-2018
Source: The Economist

Tech and data offer hope of more financial inclusion in developed countries, too

HACKNEY IN NORTH-EAST London prides itself on being one of the capital’s most ethnically diverse boroughs. The council identifies only 36% of the population as “white British”. Dalston Junction, a now-trendy part of the borough, buzzes with a down-at-heel sort of cosmopolitanism: a Caribbean bakery; the Halal Dixy Chicken shop; the Afro World wig-and-extensions parlour; dozens of outlets for Lycamobile (“call the world for less”) and for money-transfer firms.

It is also diverse in wealth. Nearby gentrification is sprouting in a few trendy coffee bars and a sleek creperie. But Hackney is also, on a measure of “multiple deprivation”, the 11th most deprived of more than 400 local-authority areas in Britain. Dalston has more than the usual number of charity-run second-hand shops and at least four pawnbrokers.

Competing with this last group is a branch of Oakam, a British lender set up in 2006. It advertises itself as an “alternative to doorstep lenders”, the traditional financiers for those beneath the bar set by mainstream banks. Originally aimed at recent immigrants, it extended its reach to the rest of those “lacking access to basic financial services”—a group it puts at 12m across Britain. A report published in March 2017 by a House of Lords committee estimated that 1.7m adult British residents have no bank account; 40% of the working-age population have less than £100 ($140) in cash savings; and 31% show signs of financial distress. Den Rest des Beitrags lesen »

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Globalization Is Not in Retreat

Posted by hkarner - 28. April 2018

Quite essential! (hfk)

Date: 28-04-2018
Source: Foreign Affairs By Susan Lund and Laura Tyson
Digital Technology and the Future of Trade

By many standard measures, globalization is in retreat. The 2008 financial crisis and the ensuing recession brought an end to three decades of rapid growth in the trade of goods and services. Cross-border financial flows have fallen by two-thirds. In many countries that have traditionally championed globalization, including the United States and the United Kingdom, the political conversation about trade has shifted from a focus on economic benefits to concerns about job loss, dislocation, deindustrialization, and inequality. A once solid consensus that trade is a win-win proposition has given way to zero-sum thinking and calls for higher barriers. Since November 2008, according to the research group Global Trade Alert, the G-20 countries have implemented more than 6,600 protectionist measures.

But that’s only part of the story. Even as its detractors erect new impediments and walk away from free-trade agreements, globalization is in fact continuing its forward march—but along new paths. In its previous incarnation, it was trade-based and Western-led. Today, globalization is being driven by digital technology and is increasingly led by China and other emerging economies. While trade predicated on global supply chains that take advantage of cheap labor is slowing, new digital technologies mean that more actors can participate in cross-border transactions than ever before, from small businesses to multinational corporations. And economic leadership is shifting east and south, as the United States turns inward and the EU and the United Kingdom negotiate a divorce. Den Rest des Beitrags lesen »

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What’s Been Stopping the Left?

Posted by hkarner - 11. April 2018

Dani Rodrik is Professor of International Political Economy at Harvard University’s John F. Kennedy School of Government. He is the author of The Globalization Paradox: Democracy and the Future of the World Economy, Economics Rules: The Rights and Wrongs of the Dismal Science, and, most recently, Straight Talk on Trade: Ideas for a Sane World Economy.

If progressive political parties had pursued a bolder agenda in the face of widening inequality and deepening economic anxiety, perhaps the rise of right-wing, nativist political movements might have been averted. So why didn’t they?

CAMBRIDGE – Why were democratic political systems not responsive early enough to the grievances that autocratic populists have successfully exploited – inequality and economic anxiety, decline of perceived social status, the chasm between elites and ordinary citizens? Had political parties, particularly of the center left, pursued a bolder agenda, perhaps the rise of right-wing, nativist political movements might have been averted.

In principle, greater inequality produces a demand for more redistribution. Democratic politicians should respond by imposing higher taxes on the wealthy and spending the proceeds on the less well off. This intuition is formalized in a well-known paper in political economy by Allan Meltzer and Scott Richard: the wider the income gap between the median and average voter, the higher the taxes and the greater the redistribution. Den Rest des Beitrags lesen »

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Investing in Poverty Reduction

Posted by hkarner - 19. März 2018

Laura Tyson, a former chair of the US President’s Council of Economic Advisers, is a professor at the Haas School of Business at the University of California, Berkeley, and a senior adviser at the Rock Creek Group.

Lenny Mendonca, Chairman of New America, is Senior Partner Emeritus at McKinsey & Company.

After almost a year of accomplishing nothing, the Republican-led US Congress has managed to enact a far-reaching tax law and budget legislation that will shape the contours of future government spending. Neither will solve America’s most pressing economic challenges, but each does include at least one sensible idea for tackling poverty.

BERKELEY – The tax legislation that US President Donald Trump signed into law last December will dramatically increase inequality and the federal budget deficit. Yet, hidden within it – and within budget legislation enacted in February – are two promising programs for helping state and local governments address the needs of disadvantaged Americans.

The new tax law creates generous incentives to encourage private investment in distressed urban and rural areas; and a provision in the budget package will establish a competitive grant program to help states fund “pay-for-success” contracts. Both ideas have their roots in the Democratic administrations of Presidents Bill Clinton and Barack Obama; but they attracted congressional Republican support because they empower state and local governments, rely on public-private partnerships, and encourage rigorous impact assessments. Den Rest des Beitrags lesen »

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Automation Isn’t Killing Jobs, Study Says, But May Be Keeping Income in Check

Posted by hkarner - 11. März 2018

Date: 10-03-2018
Source: The Wall Street Journal

New research finds workers are getting a smaller slice of an expanding economy

Robotic arms weld car frames in a Japanese auto factory in December.
Employment in transportation equipment manufacturing was nearly unchanged between 1970 and 2007, but the sector became far more productive.

A new study rebuts the notion that automation is eliminating jobs broadly in the economy, but does find technological advancement doesn’t reward workers much with added income.

Over the previous five decades, automation hasn’t reduced the number of jobs available in 18 advanced economies, including the U.S.–in fact, it helped increase total employment, finds a new paper by the Massachusetts Institute of Technology’s David Autor and Utrecht University’s Anna Salomons and released Thursday by the Brookings Institution.

But the economists’ paper also found that automation, and the productivity enhancements that it drives, has resulted in laborers taking home a smaller slice of an expanding economic pie. Den Rest des Beitrags lesen »

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Macron’s Education Revolution

Posted by hkarner - 8. März 2018

Philippe Aghion

Philippe Aghion is a professor at the Collège de France and at the London School of Economics, and a fellow of the Econometric Society and of the American Academy of Arts and Sciences.

Benedicte Berner is a lecturer at Sciences Po in Paris, chair of Civil Rights Defenders, and an associate at Harvard University’s Davis Center for Russian and Eurasian Studies.

French President Emmanuel Macron has drawn fire for his pro-growth economic reforms, which some critics have characterized as giveaways to corporations and the wealthy. But, when considered in full, Macron’s agenda is clearly aimed at reducing inequality and boosting social mobility.

PARIS – Since eliminating a wealth tax and imposing a flat tax on capital gains, French President Emmanuel Macron opponents have quite maliciously compared him to US President Donald Trump, who slashed taxes for the wealthiest Americans in December. Some of his harshest critics even refer to Macron as a “president for the rich.”

Nothing could be further from the truth. Viewed in full, Macron’s reform agenda offers a new and promising approach to tackling inequality and social immobility in France. And, at any rate, the United States and France are hardly comparable on these issues. Although income inequality has increased in France since 1990, it remains well below that of other developed countries. Den Rest des Beitrags lesen »

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Job and Cultural Insecurity, More Than Inequality, Fuels Populism

Posted by hkarner - 22. Februar 2018

Date: 21-02-2018
Source: YaleGlobal

For many workers, insecurity is a more pressing concern than inequality. They worry more about jobs threatened by global trade and automation, their communities’ vanishing way of life, and children’s future than inequality and increasing amounts of wealth controlled by a small percentage of the population. Populist leaders, many wealthy themselves, convince substantial numbers of voters that that the educated, the experts and established political leaders do not care about the plight of ordinary workers. Middle-class liberals may support the causes that benefit the poor or working class, but they can also “insulate themselves with residences in gentrified cities, assortative marriage patterns and cosmopolitan professional occupations,” explains economist Pranab Bardhan. “Sociologists often point out that the part of inequality that is salient to us is the contrast between our own lifestyle – and housing and school choices – and that of those who may be just above us. The inequality with the billionaires is too distant.” Bardhan offers practical proposals – on wage subsidies, global skill partnerships, and trade union and church initiatives – for countering populism and easing the insecurity over culture, immigration and inequality. – YaleGlobal Den Rest des Beitrags lesen »

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Milanović: „Große Vermögen höher besteuern“

Posted by hkarner - 15. Februar 2018

 InterviewAndrás Szigetvari15. Februar 2018, 12:28, derstandard.at

Viele Industrieländer, besonders die USA, entwickeln sich rückschrittlich, sagt der Ökonom Branko Milanović

Branko Milanović zählt zu den weltweit anerkanntesten Wissenschaftern, die zu Fragen der Verteilungsgleichheit forschen. Berühmt wurde er vor allem durch seine Arbeiten zu den Auswirkungen der Globalisierung auf die Einkommen in Industriestaaten und Schwellenländern. Milanović ist schwer in das links-rechts Schema einzuordnen – was ihn als Forscher so spannend macht.

STANDARD: Sie haben vor kurzem in einem Beitrag geschrieben, dass die globalen Eliten zunehmend eine Politik wie im 19. Jahrhundert verfolgen, wenn es um industrielle Beziehungen und Steuergesetzgebung geht. Wie kommen Sie darauf?

Milanović: Das war eine Reaktion auf das diesjährige Treffen des Weltwirtschaftsforums in Davos. Seit inzwischen acht Jahren ist die wachsende Ungleichheit das bestimmende Thema dort. Jedes Jahr beklagen die Manager der wichtigsten globalen Unternehmen in dem Schweizer Bergdorf die Entwicklung, und dennoch ändert sich nichts, im Gegenteil. Die Leute fahren nach Hause und zahlen Lobbyisten dafür, dass sie gegen strengere Steuergesetze kämpfen. Den Rest des Beitrags lesen »

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Inclusive Growth or Else

Posted by hkarner - 6. Februar 2018

Sergei Guriev

Sergei Guriev is Chief Economist at the European Bank for Reconstruction and Development.

Danny Leipziger, Professor of International Business at George Washington University and Managing Director of the Growth Dialogue, was a vice president of the World Bank and served as Vice Chair of the Spence Commission on Growth and Development.

Jonathan Ostry is Deputy Director of the IMF’s Research Department.

The decision to place inequality at the center of the discussion at Davos this year was a promising development. But actual solutions remain undeveloped, and concern about widening economic disparities within many countries remains inadequate, which must change if the current global economic recovery is to continue.

LONDON/WASHINGTON, DC – At this year’s World Economic Forum meeting in Davos, Switzerland, participants did not question the basic building blocks of growth in today’s global economy: free markets, good governance, and investment in human capital and infrastructure. But they did criticize how unfairly the benefits of growth are being distributed. Rightly so: without a strong policy response aimed at building a more inclusive growth model, rising populism and economic nationalism will impair the functioning of markets and overall macroeconomic stability – potentially cutting short the current global recovery. Den Rest des Beitrags lesen »

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