Answer:
Inequality in rich countries has only grown in the last 30 years, and this is not bad news only for those behind or for social cohesion.
Excessive income concentration also hampers economic growth, according to the report “Together in This - Why Less Inequality Benefits Everyone,” released by the OECD ((Organization for Economic Development).
At some level, inequality is intrinsic to capitalism and necessary to stimulate people to study, work and do what is necessary to get rich. The problem is when the gap gets so big that the incentives themselves begin to erode - and that's what's happening.
The OECD estimates that rising inequality between 1985 and 2005 removed 4.7 percentage points from the accumulated growth between 1990 and 2010 in its members, mostly industrialized countries.
Some emerging countries had a fall in inequality in the period, but not enough to bring it to civilized levels. The OECD points out that its analysis goes for them as well.
They suggest focus on 4 areas. In addition to quality and universal education from early childhood, there is a need to increase female participation in the workforce. This was one of the few forces that has held back rising inequality in recent years.
Another recipe is to focus not only on job creation but on job quality, as inequality rose even when unemployment was low. This was due to a polarization of vacancies, with well-paid and skilled jobs on one side and precariousness on the other.
More than half of the vacancies created since the mid-1990s were part-time, temporary or self-employed. Not surprisingly, the United States is arguing to raise the minimum wage in the face of the fact that even employed people remain below the poverty line and depend on government aid.
Another tool is fiscal policy. Among the recommendations, the OECD cites “raising the marginal rate of the rich, improving law enforcement, eliminating or reducing deductions, which tend to disproportionately benefit the rich, as well as reviewing the role of taxes on all types of property and wealth, including the transfer of assets ”.
