Three beliefs about globalization have propagated since the early 1980s. First, that globalization leads to a reduction in global inequality. Second, that high income growth among the richest will lift the incomes of the poorest. Third, that there is no alternative to rising inequality without turning our backs on trade and technology. The recently released World Inequality Report, the first research study to comprehensively examine wealth and income inequality trends across rich and emerging countries over approximately 40 years, dispels these notions.
40 Years of Data Suggests 3 Myths About Globalization
Policy matters more than trade or technology.
March 02, 2018
Summary.
Globalization is a complicated topic, and misperceptions abound around how exactly it impacts inequality. Based on the recently released World Inequality Report, the author discusses three of the most common of these misperceptions. Specifically, he argues that globalization has led to a rise in global income inequality, not a reduction; that income doesn’t trickle down; and that policy – not trade or technology – is most responsible for inequality. He goes on to suggest that dispelling these myths is the first step towards effecting long-lasting, systemic change in how we run our businesses, governments, and societies.