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Significant changes in the global economy with respect to trade, investment and technology are casting a shadow over the system at a time when concerns about who has benefited from globalization and who has not is affecting the conduct of national economic policies. Widening inequality in many countries, but principally the U.S., is a concern since America is still the world’s largest and in many respects most open economy. A shift away from openness would harm not only emerging market economies, but also create worries for the maintenance of the system. For this reason, exploring what has driven the rising income inequality in the U.S. is important to understand and this paper lays out those trends in the context of broader issues affecting the future of globalization.
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- Globalization and National Income Inequality: Observations and Lessons from the U.S. Experience
Danny M. Leipziger
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