Experience Stern | News & Events

Excerpt from Bloomberg -- "Inequality is worsening in many advanced economies and especially in the United States. You have to ask yourself why. I think it's because technological innovation is capital-intensive and labor-saving because trade and globalization reduces the income and jobs of those who have low skills or are partially skilled... There are lots of factors that are driving [inequality] and it's leading first to social and political instability, but it also negatively affects economic growth because you are redistributing the income from those who spend more to those who save more. So, over time, the fall in the share of labor income is going to have a negative impact on economic growth and aggregate demand."

Read more

Additional coverage appeared on Bloomberg Businessweek and Yahoo! News.