During the stagflation phase, thus, economic inequality increases within each social stratum—peasants, minor and middle-rank nobility, and the magnates. Growing inequality creates pressure for social mobility, both upward and downward. Increased social mobility generates friction and destabilizes society. The growing gap between the poor and rich

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The late 1970’s marked a break in the post-war compact between labor and capital , the tacit arrangement following World War II where businesses compromised with labor unions in exchange for stability and economic growth. In 1980, we saw the overwhelmingly popular elections of Ronald Reagan in the US and Margaret Thatcher in the UK. At home, Paul... See more

At the heart of our divisions is almost half a century of rising inequality and declining social mobility. Americans tolerate more economic inequality than citizens of other modern democracies: if anyone can become anything, today’s unequal results are fair and might well change tomorrow. That was never completely true, but now it’s plainly false.

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