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Rising Inequality and Slowing Productivity Have a Common Driver: Government Intervention

Mihai Macovei

Starting with Thomas Piketty and moving to more moderate positions, such as those held by the OECD, a growing chorus of alarmist voices decries the rising economic inequality in the Western world and especially in the United States. Surprisingly enough, the same mainstream analysts complain about the anaemic growth of labour productivity without seeing the correct link between the two.

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