The age of endless growth in prosperity for everyone is now a distant memory of a rather more hopeful era. Despite what the government tells us, inequality is growing. And this is damaging to the economy, and to ordinary citizens who are struggling to get by on ever-diminishing incomes and ever-rising living costs. It’s highly unlikely that Brexit will help matters, too.
Rising inequality coincided with a profound shift in economic policy throughout much of the developed nations of the world – neoliberalism. Political parties got elected from the end of the seventies by promising to cut tax rates, ‘free up’ markets, and reduce government intervention in the economy. The change was most pronounced in Britain and the United States, after Margaret Thatcher and Ronald Reagan took office. But it also occurred to varying degrees in Continental Europe, Canada, Australia, and Japan.
Those countries with largest tax cuts also…
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