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Policy brief · Reclaiming Public Value

Technological change, inequality and the collapse of the liberal order

How has technological change driven wage stagnation, inequality and political upheaval, and what new social contract could respond?

Manuel Muñiz, Karl Kaiser, Carlos Lastra-Anadón, Henning Meyer and Manuel Torres · G20 Insights, Overarching Vision · April 2017

Abstract

Prepared for the G20 Insights platform during the German G20 presidency, the paper argues that the world is at the start of a deep political convulsion caused by how technological change shapes the creation and distribution of wealth. Wage stagnation since the 1970s, a shrinking middle class and rising inequality amount to a breach of the social contract that feeds radical politics. The authors call for the underlying drivers to be diagnosed and addressed through bold policy responses.

Read the policy brief at G20 Insights, Overarching Vision

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