For sustainable recovery from the COVID-19 global economic shock, it’s imperative to break from policy choices that produce a concentration of economic power and wealth in a limited section of the economy but old habits, die hard warns UNCTAD’s Richard Kozul-Wright.
The problem of inequality won’t be solved simply by more education and training; inequality is hardwired into the rules of this hyper globalized world. The director of the Division on Globalization and Development Strategies at UNCTAD joins Paul Jay on theAnalysis.news podcast.
In dealing with the Covid economic crisis, governments must not repeat the strategy of the last crisis, where the withdrawal of fiscal stimulus adversely impacted growth, the continuation of quantitative easing, and low-interest rates propelled asset prices ever higher. It led to a combination of high inequality, financial fragility, huge amounts of debt, and growing anxiety everywhere.
Governments must recapture some of the resources that are wasted in this highly financialized, highly unequal, highly concentrated world to fund a genuine Green New Deal. Kozul-Wright joins Paul Jay on theAnalysis.news podcast.
If current trends continue, in 10 years’ time wages will be back to the brink of the abyss level of 1930. If governments opt for premature fiscal tightening, the recovery will fizzle out by 2022, says Richard Kozul-Wright, the Director Division of Globalization and Development Strategies at UNCTAD.
Richard Kozul-Wright explains why these challenges need to be addressed at once in a transformative agenda. The COVID-19 crisis shows that funding can be made available; the problem is the lack of political will to confront the Wall Street consensus.
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