The Vicious Circle Of Inequality | Sandro Scocco skriver på Social Europe
Vilken vilja finns att bryta ojämlikhetens onda cirkel? Arena Idés chefsekonom, Sandro Scocco, skriver på Social Europe om den ökade ojämlikheten, debatten om vad den beror på och oviljan att bryta den onda cirkeln.
So why is nothing happening? One explanation could be that all agents – politics, business and households – are adapting to an environment of low productivity and have increased their investments in rent-seeking while cutting those in real and human capital: the vicious circle of inequality.
How do we get back to a virtuous circle? The medicine isn´t that difficult to prescribe; restore fiscal transfers’ redistributive power, increase the wage bargaining power of workers, increase real and human capital investments to boost productivity and restore free competition in product markets. So, to battle inequality we need much more pro-productivity and much less pro-business. But who will be the capable agent of this? Not big business. Not the one percent. Not ruling politicians in need of powerful friends. As Pink Floyd asked: “Is there anybody out there?”. Let´s hope there is because we badly need a Renaissance.