The economist who coined the phrase “the economic circumstances that are driving economic growth” says there are a number of things the country needs to do to reduce inequality and spur economic growth.
In an interview with The Associated Press, John Taylor says the current system is failing to keep pace with the changes in the economy, and he thinks the world is at a tipping point.
“We have to think about how we move forward in terms of making sure that economic conditions are as they are today, where we have more opportunity for growth, where people have greater economic opportunity, and where there are greater opportunities for opportunity for people who are lower income,” Taylor said.
In the article, Taylor, who has spent the last decade working at the Harvard Kennedy School, said there are three important questions that need to be asked of policy makers in the United States: 1.
What should be the role of taxation?
The answer is tax.
What is the role for fiscal policy?
Tax and fiscal policy are critical.
Taylor says there needs to be a “great emphasis on both tax and fiscal policies.”
The author of “The Economic Times” writes that there is “a serious risk of social unrest and economic collapse” if current policies are not reversed.
Taylor, who wrote a book about the rise of inequality in the U.S. in 2006, said inequality is at its highest level since the Great Depression.
He says if current trends continue, the U: “will have a very difficult time reversing the economic decline.”
In a statement provided to the AP, Taylor said the economic crisis is creating “unprecedented social unrest” and that there are serious concerns about the future of the planet.
While Taylor doesn’t think the economy is going to get better, he says he believes the current economic environment is a good starting point for policy changes.
He calls for a fundamental rethinking of how government policies are set up, which he calls “a kind of new paradigm.”
“There’s no question that the economy and the distribution of income is at record levels, and the trend is accelerating,” Taylor wrote.
Wealthy people have a vested interest in the status quo, Taylor added.
“They’ve got the political clout.
And the political pressure is there to ensure that the status of the economy continues to be under lock and key.”
Taylor’s book, “The Great Divergence: How the Wealth Gap Between the Wealthiest and the Rest of Us is Driving the Global Crisis,” was released in June and is now available on Amazon.