Reducing Inequality

The rising gap between the rich and the poor has become a threat to social cohesion in most rich countries. To reverse the trend it will be crucial to better understand the importance of different drivers of income and wealth inequality.


New Paradigm Knowledge Base

  • The Challenge

    Inequality in advanced countries, such as Germany, has reached levels of 100 years ago.

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  • What went wrong?

    It is often repeated that inequality is just a transitory phenomenon and is necessary for dynamism and economic growth.

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  • New Economy in Progress

    Inequality is a political choice, produces discontent and can even lead to financial instability.

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5 ways that are discussed to reduce inequality

  1. Taxing wealth as a tool in the fight against rising wealth inequality.
  2. Increased inheritance taxes in an attempt to boost social mobility.
  3. Compensate workers through stock ownership schemes to better distribute capital.
  4. Combat tax avoidance by clamping down on offshore locations and tax havens.
  5. Investment in education in a drive to reduce market levels of inequality; redistribution is not enough.

More News on Inequality

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