We’re on the road to self-destruction

The 30-year experiment in boosting inequality has failed, says author Stewart Lansley.

Over the last 30 years, a growing share of the global economic pie has been accumulated by the world's wealthiest individuals. In both Britain and America, the share of income held by the top 1% over this period has more than trebled. Today, the world's 1,200 billionaires hold economic firepower equivalent to a third of the size of the American economy.

According to economic orthodoxy since the late 1970s, a stiff dose of inequality brings more efficient and faster-growing economies. This is because higher rewards and lower taxes at the top, it is claimed, boosts entrepreneurialism and delivers a larger economic pie.

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