The rising gap between rich and poor has become a threat to social cohesion in most rich countries. To reverse this trend it will be crucial to better understand the importance of different drivers of income and wealth inequality.
Inequality in advanced countries, such as Germany, has reached levels of 100 years ago.
What Went Wrong
It is often repeated that inequality is just a transitory phenomenon and is necessary for dynamism and economic growth.
New Economy in Progress
Inequality is a political choice, produces discontent and can even lead to financial instability.
5 WAYS THAT ARE DISCUSSED TO REDUCE INEQUALITY
Taxing wealth as a tool in the fight against rising wealth inequality.
Increased inheritance taxes in an attempt to boost social mobility.
Compensate workers through stock ownership schemes to better distribute capital.
Combat tax avoidance by clamping down on offshore locations and tax havens.
Investment in education in a drive to reduce market levels of inequality; redistribution is not enough.
INCOME INEQUALITY AND GROWTH IN EUROPE, 1989-2017, BLANCHET ET AL. (2019).
Thomas Fricke on the Journey from the Idea to the Simulator
Mario Czaja: Is the start up capital coming soon?
Charlotte Bartels: How the Wealth Simulator Works
Wealth Simulator: Wealth Gap in Germany Continues to Widen
Countdown: Follow Along the Launch of Our New Wealth Simulator
Inequality - From a Suppressed Topic to a Wealth Simulator
More Wealth For All - But How? Launch of a New Wealth Simulator
The Political Dimension of Inequality
More Wealth for All - But How? On the presentation of a Wealth Simulator for Germany
Recap: Will the Gender Pay Gap disappear anytime soon?
Event: Is the Shortage of Skilled Workers Narrowing the Gender Pay Gap?
Is now the time for women to close the wage gap?
OTHER MAIN TOPICS
After decades of overly naive market belief, we urgently need new answers to the great challenges of our time. More so, we need a whole new paradigm to guide us. We collect everything about the people and the community who are dealing with the question of a new paradigm and who analyze the historical and present impact of paradigms and narratives – whether in new contributions, performances, books and events.
the role of
THE ROLE OF
For decades, there was a consensus that reducing the role of the state and cutting public debt would generate wealth. This contributed to a chronic underinvestment in education and public infrastructure. New research focuses on establishing when and how governments need to intervene to better contribute to long-term prosperity and to stabilize rather than aggravate economic fluctuations.
More than a decade after the financial crisis there still seems to be something seriously wrong with the financial system. Financial markets still tend to periodically misprice risk and contribute to boom and bust cycles. A better financial system needs to discourage short-termism and speculative activity, curtail systemic risk and distribute wealth more broadly.
During the high point of market orthodoxy, economists argued that the most 'efficient' way to combat climate change was to simply let markets determine the price of carbon emissions. Today, there is a growing consensus that prices need to be regulated and that a carbon price on its own might not be enough.
Do we need a whole new understanding of economic growth? What would be a real alternative? How viable are alternatives to GDP when it comes to measuring prosperity? These and other more fundamental challenges are what this section is about.
After three decades of poorly managed integration, globalization is threatened by social discontent and the rise of populist forces. A new paradigm will need better ways not only to compensate the groups that have lost, but to distribute the gains more broadly from the start.
The euro was planned during a period in which economic policy making was driven by a deep belief in market liberalism and the near impossibility of systemic financial crises. This belief has been brought into question since the euro crisis, which showed that panics do happen. New thinking needs to focus on developing mechanisms to protect eurozone countries from such panics and to foster economic convergence between members.
The current Corona crisis is probably the worst economic crisis of the post-World War 2 era. Economists are working hard on mitigating the economic effects caused by COVID-19 to prevent a second Great Depression, the break-up of the Eurozone and the end of globalisation. We collect the most important contributions.