Don't blame globalisation for the squeezing of the middle class. CEPS Policy Brief, No. 121, 2 February 2007
(2007) Don't blame globalisation for the squeezing of the middle class. CEPS Policy Brief, No. 121, 2 February 2007.
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Abstract
Globalisation is being blamed for the squeezing of the middle class and protectionism is being offered as a solution. We argue in this paper that the increase in inequality is a long-term trend resulting from a variety of factors, including the decline in manufacturing, the reduction in the progressivity of taxation and the steady increase in asset prices, and that globalisation has only had a marginal impact on it. Protectionism will not reverse any of these trends. We discuss some policy options aimed at cushioning this increase in inequality and argue that they will likely result in expanding fiscal deficits and pressure on central banks to test the limits of growth.
| Item Type: | Policy Paper |
|---|---|
| Public Domain: | No |
| Refereed: | No |
| Status: | Published |
| Authors, Individual: | Ubide, Angel. |
| Title: | Don't blame globalisation for the squeezing of the middle class. CEPS Policy Brief, No. 121, 2 February 2007 |
| Language: | English |
| Institution: | Centre for European Policy Studies, Brussels |
| Journals and Series: | Series > Centre for European Policy Studies (Brussels) > CEPS Policy Briefs |
| Pages: | 4 |
| Month: | February |
| Year: | 2007 |
| Subjects: | EU policies and themes > External relations > globalisation/globalization EU policies and themes > Policies & related activities > economic and financial affairs > general |
| Keywords: | Economic inequality. |
| Alternative Locations: | http://shop.ceps.eu/BookDetail.php?item_id=1432 |
| ID Code: | 7361 |
| Deposited By: | Wilkin, Phil |
| Deposited On: | 27 January 2008 |
