The instability of inequality

Good macro overview from Nouriel Roubini on the growing trend toward civil unrest in the world.  See:  The instability of inequality.

“Any economic model that does not properly address inequality will eventually face a crisis of legitimacy. Unless the relative economic roles of the market and the state are rebalanced, the protests of 2011 will become more severe, with social and political instability eventually harming long-term economic growth and welfare.”

Nouriel Roubini is Chairman of Roubini Global Economics, Professor of Economics at the Stern School of Business, New York University, and co-author of the book Crisis Economics.

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2 Responses to The instability of inequality

  1. michael says:

    La Grande Revolution

    A look back at history may provide a few clues to the future…..there are many similarities to our situation today with the French Revolution …..only today it is worldwide and todays unwashed are much more entitled…..
    That revolution also began slowly as a stirring of the unwashed….. the OWS movement today? ……. will the Big O be our Louis XVI ?

  2. Robert says:

    The system that has proven best in producing prosperity, individual freedom, and “inequality” is free market capitalism. It is what has produced modern Classic Western Liberalism. How rich was Stalin compared to the inmates of the Gulag? How rich is Castro compared to the average Cuban? How rich is King Abdullah? Mao? These people were or are very rich and had or have absolute power of life and death over their subjects. In the Western World there are many fabulously wealthy people but they don’t have anything to do with me or affect me other than making my life better for the most part. If you took all their money and divided it among the citizens it would not amount to much but the difference here is that many people start with little or nothing and gain wealth and many people who start with great wealth lose it. This is not possible in an oppressive top down state unless you use a gun or are born into the new nobility.
    As long as you can find a poor sick person you will find a progressive politician close by but not for long. It is just about impossible to find a “progressive” campaign speech in Canada or the US that doesn’t degenerate into a “Queen For A Day” episode with the politician referring by name to some poor wretch in dire straits victimized by heartless capitalism. If you are not old enough to have watched “Queen For A Day” refer to:
    It’s time to stop the collective mob of grasping greedy self centred power-mongers, do-gooders, incompetent fools, misfits, and malcontents in government from interfering in the economy and destroying out lives, liberty, and country.

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