With Trump’s victory, the world has decisively entered a period of increasing unpredictability and instability.
Trump’s “America First," anti-globalist agenda threatens trade, the peace in Europe and East Asia and further violence in the Middle East.
For 200 years, there have been two schools of thought about what determines the distribution of income -- and how the economy functions. It is important to understand both, because our views about government policies and existing inequalities are shaped by which of the two schools of thought one believes provides a better description of reality.
Something interesting has emerged in voting patterns on both sides of the Atlantic: Young people are voting in ways that are markedly different from their elders. A great divide appears to have opened up, based not so much on income, education or gender as on the voters' generation.
NEW DELHI -- As U.S. President Barack Obama prepares to embark on an historic visit to Cuba, the future of the communist-ruled island is the subject of widespread speculation. Some observers are hoping that the ongoing shift toward capitalism, which has been occurring very gradually under Raúl Castro's direction, will naturally lead Cuba toward democracy. Experience suggests otherwise.
The only cure for the world's malaise is an increase in aggregate demand. Far-reaching redistribution of income would help, as would deep reform of our financial system -- not just to prevent it from imposing harm on the rest of us, but also to get banks and other financial institutions to do what they are supposed to do: match long-term savings to long-term investment needs.
America is becoming a more divided society -- divided not only between whites and African Americans, but also between the 1 percent and the rest, and between the highly educated and the less educated, regardless of race.
MILAN -- The truth is that the Internet-led process of exploiting under-utilized resources - be they physical and financial capital or human capital and talent - is both unstoppable and accelerating. The long-term benefits consist not just in efficiency and productivity gains (large enough to show up in macro data), but also in much-needed new jobs requiring a broad range of skills. Indeed, those who fear the job-destroying and job-shifting power of automation should look upon the sharing economy and breathe a bit of a sigh of relief.
Western political and economic structures are, in some ways, specifically designed to resist deep and rapid change, if only to prevent temporary and reversible fluctuations from having an undue influence on underlying systems. This works well when politics and economies are operating in cyclical mode, as they usually have been in the West. But when major structural and secular challenges arise, as is the case today, the advanced countries' institutional architecture acts as a major obstacle to effective action.
ISTANBUL -- A new social contract is needed to account for the increasingly important role that individual preferences, and individual responsibility, play in today's world. Each citizen should feel empowered, not isolated and abandoned, in the face of globalization and technological transformation.