Fixing the flaws in today’s capitalism

ACROSS the rich world, there is a sense that the economy no longer works for many people. Globalisation has brought huge benefits to the world as a whole. But middle-income people in rich countries appear to have fared badly in recent years.

High unemployment afflicts much of Europe. America and Britain have low unemployment, but have seen a big rise in insecure work. Real-wage growth across the rich world has been measly.

 

But while ordinary people are struggling, those at the top are doing just fine. Income and wealth inequality have shot up. The top 1% of Americans command nearly twice the amount of income as the bottom 50%.

 

The situation is more equitable in Europe, though the top 1% have had a good few decades.

 

Part of the problem is that people do not feel as though they get a fair shot to make something of themselves. Big corporations, including tech giants such as Amazon, Google and Facebook, seem to be hogging all the gains. Relative to the size of the economy, corporate profits have risen sharply in recent years.

 

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