| Resumen: |
This special report explores how 21st-century capitalism should respond to the present challenges presented by widespread inequality; it examines the recent history of both inequality and social mobility; and offers four contemporary case studies: the United States, emerging Asia, Latin America and Sweden.
Based on this evidence it makes three arguments. First, although the modern global economy is leading to wider gaps between the more and the less educated, a big driver of today’s income distributions is government policy. Second, a lot of today’s inequality is inefficient, particularly in the most unequal countries. It reflects market and government failures that also reduce growth. And where this is happening, bigger income gaps themselves are likely to reduce both social mobility and future prosperity.
Third, there is a reform agenda to reduce income disparities that makes sense whatever your attitude towards fairness. It is not about higher taxes and more handouts. Both in rich and emerging economies, it is about attacking cronyism and investing in the young. You could call it a “True Progressivism”.
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