Nick Johnson has posted a good survey on inequality at his blog. This is my comment:
First read early in the morning. Thoroughly enjoyable. Great piece. Thanks for it.
Two passing thoughts: Pettis shows impressively just how important a
“more equal” distribution of income (as a share of GDP) is in a balanced
economic development.
What he also shows is that exploitation (e.g. financial repression)
and high degrees of inequality (as witnessed in China) are not the
prerogative of “the free markets” but typical appearances in state-led
economic development.
Political power is a force in its own right and it tends to be
particularly unbalanced where the state or socialist elites suppress
democracy and other forces of civil society.
Second thought: concerning Europe, the political awakening of more
and more people should not be reduced to “populism” (I am not saying you
are reducing it to populism), and much of what is referred to
pejoratively as “populism” is simply (long suppressed, still hard to
effectively express) opposition to the politically correct status quo so
much liked by the political and media elite. (Brexit is not populism –
again, I am not suggesting this is what you are saying).
Even more importantly, when are people (including those among the
non-regressive left) beginning to understand just how viciously
anti-European the EU is – it is a veritable recipe for invigorating
nationalism (and the danger of exaggerated nationalism), chauvinism (the
mutual hatred of nationalities) and old feelings of national arrogance
and rivalry in Europe.
As Pettis demonstrates brilliantly, much of what is considered
mainstream and non-populist European thinking is in truth boisterously
“populist/chauvinistic” – just listen to what German journalists,
politicians, and many members of the public have to say every day about
the inferiority of most Europeans vis-a-vis our marvellous national
character. The problem of the EU is, these exemplary Europeans argue,
that most members of the union simply aren’t German enough. (When did we
hear that line of reasoning last time?)
The dangerous implications of the EMU(s economic dysfunctionality)
are among the findings that economics has been helpful in discovering
early on, but most economists are theologians, always eager to serve the
incumbent “religious leaders”.
In my book, the apologists of the EU are a truly populist force,
convincing millions of Europeans to support a system that is thoroughly
damaging to their interests.
