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Macroscope | Governments have a chance to fix global inequality. They must seize it
- The world has gained one new billionaire every 17 hours in the past year, yet billions are living under the poverty line
- More progressive tax rates should be applied, so the rich can help pay for the pandemic
Reading Time:3 minutes
Why you can trust SCMP
There’s too much money in the world and it’s creating problems. It’s the product of super-loose monetary policies pursued by the world authorities since the 2008 crash and in the wake of the pandemic.
Bond market bears fret that overheating has consequences for consumer prices, but it is the inflationary impact on financial asset prices that policymakers need to worry about in the long run.
Irrational exuberance is running amok, distorting the value of money and intensifying global wealth inequality. If the world is to have any hope of returning to normality, it needs reining in as soon as the pandemic has passed.
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The challenge for policymakers is to deliver a soft landing for global growth without causing another crash in the process. The clock is ticking for a safer and fairer future and world authorities have their work cut out.
There is hope on the horizon with a raft of new policy initiatives from US President Joe Biden. He has nailed his colours to the mast, earmarking up to US$4.2 trillion for government spending initiatives to repair America’s broken infrastructure and boost employment, while building a fairer society in the process.
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