Economist Progressivism

8/19/2019 Economist Progressivism

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Inequality and the world economy

True Progressivism

A new form of radical centrist politics is

needed to tackle inequality without

hurting economic growth

Oct 13th 2012 | From the print edition

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BY THE end of the 19th century, the first ae of !o"a!isation and a spate of ne#

in$entions had transformed the #or!d economy% But the &'i!ded (e) #as a!so a

famous!y une*ua! one, #ith (merica+s ro""er "arons and Europe+s &o#nton (""ey)

c!asses amassin hue #ea!th- the concept of &conspicuous consumption) dates "ac.

to 1/99% The risin ap "et#een rich and poor and the fear of socia!ist re$o!ution

spa#ned a #a$e of reforms, from Theodore oose$e!t+s trust"ustin to 4!oyd

'eore+s 5eop!e+s Budet% 'o$ernments promoted competition, introduced

proressi$e ta6ation and #o$e the first threads of a socia! safety net% The aim of this

ne# &5roressi$e era), as it #as .no#n in (merica, #as to ma.e society fairer#ithout reducin its entrepreneuria! $im%

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7odern po!itics needs to undero a simi!ar rein$ention8to come up #ith #ays of

mitiatin ine*ua!ity #ithout hurtin economic ro#th% That di!emma is a!ready at

the centre of po!itica! de"ate, "ut it most!y produces heat, not !iht% Thus, on

(merica+s campain trai!, the !eft attac.s 7itt omney as a ro""er "aron and the riht

derides Barac. O"ama as a c!ass #arrior% n some European countries po!iticians ha$e

simp!y i$en in to the mo"- #itness Fran:ois Ho!!ande+s proposed ;hina+s ner$ous em"arrassment a"out the

e6cesses of Ferraridri$in prince!ins, or ndia+s refusa! to tac.!e corruption%

n this section

• True 5roressi$ism

• ( European meamerer? @ein, dan.e

• The >hi!econ Aa!!ey cha!!ene

• am to 7oros

• The prosecutoria! maCe

eprints

e!ated topics

• 4atin (merica

• Economic ne*ua!ity

• Ed 7i!i"and

• Francois Ho!!ande

• ndian mar.ets

(t the core, there is a fai!ure of ideas% The riht is sti!! not con$inced that ine*ua!ity

matters% The !eft+s defau!t position is to raise incometa6 rates for the #ea!thy and toincrease spendin sti!! further8un#ise #hen s!uish economies need to attract

entrepreneurs and #hen o$ernments, a!ready far "ier than oose$e!t or 4!oyd

'eore cou!d ha$e imained, are o$er"urdened #ith promises of future !aresse% ( far

more dramatic rethin. is needed- ca!! it True 5roressi$ism%

To have or to have not

oes ine*ua!ity rea!!y need to "e tac.!ed? The t#in forces of !o"a!isation and

technica! inno$ation ha$e actua!!y narro#ed ine*ua!ity !o"a!!y, as poorer countries

catch up #ith richer ones% But #ithin many countries income aps ha$e #idened%

7ore than t#othirds of the #or!d+s peop!e !i$e in countries #here income disparities

ha$e risen since 19/0, often to a start!in deree% n (merica the share of nationa!

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income oin to the top 0%01= some 1D,000 fami!ies has risen from ust o$er 1= in

19/0 to a!most hina credit is siphoned to state

o#ned enterprises and #e!!connected insiders the e!ite a!so ain from a strin of

monopo!ies% n ussia the o!iarchs+ #ea!th has e$en !ess to do #ith

entrepreneuria!ism% n ndia, too often, the same is true%

n the rich #or!d the cronyism is "etterhidden% One reason #hy Ga!! treet accounts

for a disproportionate share of the #ea!thy is the imp!icit su"sidy i$en to too"itofai! "an.s% From doctors to !a#yers, many hihpayin professions are fu!! of

unnecessary restricti$e practices% (nd then there is the most unfair transfer of a!!8

misdirected #e!fare spendin% ocia! spendin is often !ess a"out he!pin the poor

than i$in oodies to the re!ati$e!y #ea!thy% n (merica the housin su"sidy to the

richest fifth throuh mortaeinterest re!ief is four times the amount spent on

pu"!ic housin for the poorest fifth%

E$en the sort of ine*ua!ity produced "y meritocracy can hurt ro#th% f income aps

et #ide enouh, they can !ead to !ess e*ua!ity of opportunity, especia!!y in education%

ocia! mo"i!ity in (merica, contrary to con$entiona! #isdom, is !o#er than in most

European countries% The ap in test scores "et#een rich and poor (merican chi!dren

is rouh!y 30I0= #ider than it #as 2< years ao% (nd "y some measures c!ass

mo"i!ity is e$en stic.ier in >hina than in (merica%

ome of those at the top of the pi!e #i!! remain sceptica! that ine*ua!ity is a pro"!em

in itse!f% But e$en they ha$e an interest in mitiatin it, for if it continues to rise,

momentum for chane #i!! "ui!d and may !ead to a po!itica! outcome that ser$es

no"ody+s interests% >ommunism may "e past re$i$in, "ut there are p!enty of other

"ad ideas out there%

Hence the need for a True 5roressi$e aenda% Here is our suestion, #hich stea!sideas from "oth !eft and riht to tac.!e ine*ua!ity in three #ays that do not harm

ro#th%

Compete, target and reform

The priority shou!d "e a oose$e!tian attac. on monopo!ies and $ested interests, "e

they stateo#ned enterprises in >hina or "i "an.s on Ga!! treet% The emerin

#or!d, in particu!ar, needs to introduce reater transparency in o$ernment contracts

and effecti$e antitrust !a#% t is no coincidence that the #or!d+s richest man, >ar!os

!im, made his money in 7e6ican te!ecoms, an industry #here competiti$e pressures

#ere !o# and prices #ere s.yhih% n the rich #or!d there is a!so p!enty of openinup to do% On!y a fraction of the European Jnion+s economy is a enuine sin!e

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4/51

mar.et% choo! reform and introducin choice is crucia!- no Ga!! treet financier has

done as much damae to (merican socia! mo"i!ity as the teachers+ unions ha$e%

'ettin rid of distortions, such as !a"our !a#s in Europe or the remnants of >hina+s

hukou system of househo!d reistration, #ou!d a!so ma.e a hue difference%

@e6t, taret o$ernment spendin on the poor and the youn% n the emerin #or!dtoo much cash oes to uni$ersa! fue! su"sidies that disproportionate!y fa$our the

#ea!thy in (sia and unafforda"!e pensions that fa$our the re!ati$e!y aff!uent in

4atin (merica% But the "iest taret for reform is the #e!fare states of the rich

#or!d% 'i$en their aein societies, o$ernments cannot hope to spend !ess on the

e!der!y, "ut they can reduce the pace of increase8for instance, "y raisin retirement

aes more dramatica!!y and meanstestin the oodies on offer% ome of the cash

cou!d o into education% The first 5roressi$e era !ed to the introduction of pu"!ic!y

financed secondary schoo!s this time round the taret shou!d "e preschoo! education,

as #e!! as more retrainin for the o"!ess%

4ast, reform ta6es- not to punish the rich "ut to raise money more efficient!y and proressi$e!y% n poorer economies, #here ta6 a$oidance is rife, the focus shou!d "e

on !o#er rates and "etter enforcement% n rich ones the main ains shou!d come from

e!iminatin deductions that particu!ar!y "enefit the #ea!thy such as (merica+s

mortaeinterest deduction narro#in the ap "et#een ta6 rates on #aes and

capita! income and re!yin more on efficient ta6es that are paid disproportionate!y "y

the rich, such as some property ta6es%

ifferent parts of this aenda are a!ready "ein em"raced in different countries% 4atin

(merica has in$ested in schoo!s and pioneered conditiona! cash transfers for the $ery

poor it is the on!y reion #here ine*ua!ity in most countries has "een fa!!in% ndia

and ndonesia are considerin sca!in "ac. fue! su"sidies% 7ore enera!!y, as they

"ui!d their #e!fare states, (sian countries are determined to a$oid the Gest+s

e6tra$aance% n the rich #or!d candina$ia is the most in$enti$e reion% #eden has

o$erhau!ed its admitted!y hue #e!fare state and has a uni$ersa! schoo!$oucher

system% Britain too is reformin schoo!s and simp!ifyin #e!fare% n (merica 7r

omney says he #ants to meanstest 7edicare and cut ta6 deductions, thouh he is

short on detai!s% 7ean#hi!e, 7r O"ama, a emocrat, has in$o.ed Theodore

oose$e!t, and Ed 7i!i"and, !eader of Britain+s 4a"our 5arty, is no# tryin to #rap

himse!f in Benamin israe!i+s &One @ation) Tory c!oa.%

uch crossdressin is a sin of chane, "ut po!iticians ha$e a !on #ay to o% Theriht+s instinct is too often to ma.e o$ernment sma!!er, rather than "etter% The

supposed!y ea!itarian !eft+s fai!ure is more fundamenta!% (cross the rich #or!d,

#e!fare states are runnin out of money, ro#th is s!o#in and ine*ua!ity is risin8

and yet the !eft+s on!y ans#er is hiher ta6 rates on #ea!thcreators% 7essrs O"ama,

7i!i"and and Ho!!ande need to come up #ith somethin that promises "oth fairness

and proress% Other#ise, e$eryone #i!! pay%

From the print edition- 4eaders

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Featured comments

Aie# thread

7ancur Oct 1/th 2012, 02-0I

The artic!e mentions se$era! causes for risin ine*ua!ity, and does not mention

monetary po!icy% >entra! Ban.s ha$e spent the !ast t#o decades printin money !i.ecraCy, than.s to an inf!ation and !o#er paid #or.ers sa!aries .ept in chec. "y the

>hina effect% o a!! that printed money inf!ated asset prices, and #ho o#n those

assets, other than the rich ? ha$e read doCens of artic!es in The Economist de"atin

#hether >entra! Ban.s shou!d "urst asset "u""!es, "ut ne$er read any mention to a

connection "et#een this process and ine*ua!ity% >an any"ody comment on this ?

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Aie# thread

pau! summer$i!!e Oct 1Dth 2012, 1I-3/

The ne# po!itics must marryin t#in $irtues, une*ua! outcomes and ine*ua!ity of

opportunity% One $ery co!d and sno#y anuary day in Toronto durin the 200D

Federa! e!ection #as .noc.in on doors #ith t#o !oya! hard #or.in $o!unteers%

#as campainin as a Kstar+ candidate for the *uasisocia!ist >anadian po!itica! partythe @e# emocratic 5arty% There #as nothin particu!ar!y unusua! in this e6cept that

had spent my professiona! !ife in in$estment "an.in for t#enty years inc!udin

stints as the chief economist of country+s !arest in$estment "an. and as head of (sian

e*uity research for 4ehman Brothers%

(ccustomed to pieon ho!es the media treated my candidacy as a Lman "ites doL ta!e

of "rand confusion% They #erenLt the on!y ones on this particu!ar day the t#o

campain #or.ers trudin throuh the sno# #ith me happened to "e raduate

students at the 4ondon choo! of Economics and #ere confirmed socia!ists% This #as

the first time had campained #ith them and it #asn+t !on "efore they to!d me that

#ere "oth Kfundamenta!!y opposed+ to my candidacy% They instructed me in nouncertain terms that they #ere committed to socia! ustice and since had spent my

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career in finance #here outcomes #ere a!#ays une*ua!, unust, and ser$ed no

purpose "ut to ser$e the rich they #ere con$inced cou!d not simu!taneous!y

"e!ie$e that the mar.et and socia! ustice #ere in any #ay compati"!e% 7y candidacy

#as therefore per$erse "ut in >anada the @5 #as the c!osest they cou!d come to

ideo!oica! purity and so they a!#ays campained for their !oca! candidate%

This incidenta!!y #asnLt much different than some of my in$estment "an.in friends

"ut in re$erse since mar.et outcomes #ere a!#ays fair the spoi!s oin to the

smartest and hardest #or.in, aruments for socia! ustice and e*ua!ity of opportunity

#ere simp!y a co$er for the !aCy and undiscip!ined%

Ghat struc. me then #as ho# utter!y con$inced "oth sides #ere that the une*ua!

outcomes enerated "y the mar.et and the e*ua!ity of opportunity rooted in a

country+s attempt at socia! ustice #ere incompati"!e, cha!. and cheese%

Ho#e$er, far from "ein incompati"!e, the une*ua! outcomes created "y a mar.et

economy and e*ua!ity of opportunity founded on .ey instruments of socia! ustice arein fact t#in $irtues to "e em"raced and ce!e"rated% n fact, "oth the socia!ists and the

in$estment "an.ers are ha!f riht and ma.e the case that une*ua! outcomes and

e*ua!ity of opportunity are t#in $irtues the t#in pi!!ars of sustaina"!e and competiti$e

countries to "e em"raced and ce!e"rated% ( ne# po!itics can chane the !anuae of

the de"ate and create a "ride "et#een the seemin!y incompati"!e aruments for

e*ua!ity of opportunity and une*ua! outcomes%

( stron economy and socia! ustice are t#o sides of the same coin and neither can

sur$i$e for !on #ithout the other%

Gith the fa!! of the Ber!in Ga!! in 19/9 the importance of une*ua! outcomes #as

affirmed as proof that societies #ithout mar.et determined economic #inners and

!osers cou!d not sur$i$e% imi!ar!y, the financia! crisis of 200;200/, and the

repudiation of the Gashinton >onsensus Kthe mar.et is a!#ays riht+ demonstrated

that societies that inored the importance of e*ua!ity of opportunity e6pressed in "est

in c!ass ustice, education, hea!th and community outcomes #ere the !east !i.e!y to "e

a"!e to compete in the ne# hypercompetiti$e !o"a! economy created o$er the past

*uarter century% >ommunism fai!ed "ecause it #as "ui!t on the f!a#ed princip!e of

e*ua!ity of outcomes #hi!e the economic co!!apse centred on the hih income

countries in 200;200/, and the painfu! reco$ery e$er since, reminds us that

capita!ism "ui!t on fa!se promise of e*ua!ity of opportunity is e*ua!!y f!a#ed and #i!!fai! ust the same%

The cha!!ene is ho# to ta6 and reu!ate the economy in such #ay as to ensure

une*ua! economic outcomes pro$ide the pu"!ic re$enue to in$est in instruments of

socia! ustice, name!y e*ua!ity under the !a#, #or!d c!ass pu"!ic education, the science

of ood hea!th a$ai!a"!e to a!! citiCens, and "est in c!ass pu"!ic transportation%

T#innin une*ua! outcomes #ith e*ua!ity of opportunity produces sustaina"!e #or!d

c!ass community and economic outcomes that are the foundation for the ne6t

eneration of economic and socia! success% uccessfu! societies ensure that peop!es+

!i$es are not simp!y dictated "y the circumstances of their "irth "ecause societies #i!!fai! #here rich .ids ro# up to "e rich adu!ts and poor .ids ro# up to "e poor adu!ts%


7/51

MThe T#in AirtuesM $ie# arues that the compati"i!ity of une*ua! outcomes and

e*ua!ity of opportunity is an important ans#er to many of the seemin!y intracta"!e

economic, po!itica! and socia! *uestions facin the #or!d riht no#%

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FranceMs Dpm emai! "an- @ot #hat it seemed

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(du!tery in @e# En!and- 4o$e free or die

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8/51

7ariuana- Ba.ed "rains

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7irants in (ustra!ia- The promised !and

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emocracy- Freedom is s!a$ery

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J (ir#ays hand!es a mista.e #ith race- e!fconratu!ations a!! around

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7idd!ec!ass f!iht- Yearnin to "reathe free

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The rise and fa!! of >!i$en Bundy- @o hero

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emoraphy, ro#th and ine*ua!ity- (e in$aders

Gant more? u"scri"e to The Economist and et the #ee.Ms most re!e$ant ne#s and

ana!ysis%

Print edition

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9/51

Oct 13th 2012

Oct Dth 2012

ep 29th 2012

ep 22nd 2012

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usiness this week


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11/51

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12/51

The prosecutorial mae

Ban.s in (merica ha$e a !ot to ans#er for, "ut that is no reason to !et !itiation run out

of%%%

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Next in 0nited &tates

N

http://www.economist.com/node/21564563http://www.economist.com/node/21564563http://www.economist.com/node/21564563http://www.economist.com/node/21564510http://www.economist.com/node/21564510http://www.economist.com/node/21564510http://www.economist.com/node/21564554http://www.economist.com/node/21564554http://www.economist.com/node/21564554http://www.economist.com/node/21564554http://www.economist.com/node/21564563http://www.economist.com/node/21564563http://www.economist.com/node/21564563http://www.economist.com/node/21564510http://www.economist.com/node/21564510http://www.economist.com/node/21564510http://www.economist.com/node/21564554http://www.economist.com/node/21564554http://www.economist.com/node/21564554http://www.economist.com/node/21564554


13/51

"atinos and the election

Throwing votes away

Barac. O"ama !oo.s !i.e!y to perform as stron!y amon 4atinos as he did in 200/%

epu"!icans shou!d%%%


N

Predicting re'elections

1ollow the data


N

The economy

A little help from the invisi.le hand

There #as one "riht spot for the president


http://www.economist.com/node/21564572http://www.economist.com/node/21564572http://www.economist.com/node/21564572http://www.economist.com/node/21564572http://www.economist.com/node/21564592http://www.economist.com/node/21564592http://www.economist.com/node/21564594http://www.economist.com/node/21564594http://www.economist.com/node/21564594http://www.economist.com/node/21564572http://www.economist.com/node/21564572http://www.economist.com/node/21564572http://www.economist.com/node/21564572http://www.economist.com/node/21564592http://www.economist.com/node/21564592http://www.economist.com/node/21564594http://www.economist.com/node/21564594http://www.economist.com/node/21564594


14/51

N

*oderates under pressure

The excluded middle

7oderates of "oth parties are "ein pured


N

2uotations from the campaign

3eard on the trail


N

http://www.economist.com/node/21564590http://www.economist.com/node/21564590http://www.economist.com/node/21564590http://www.economist.com/node/21564591http://www.economist.com/node/21564591http://www.economist.com/node/21564590http://www.economist.com/node/21564590http://www.economist.com/node/21564590http://www.economist.com/node/21564591http://www.economist.com/node/21564591


15/51

Crossing the line

The swing states4 5isconsin

( traditiona!!y emocratic state is #ithin epu"!ican reach

Next in 0nited &tatesN

"exington

3ope and change, four years on

Barac. O"ama re$ie#s his tactics as the e!ection race tihtens dramatica!!y

Next in The Americas

N



16/51

)eneuela/s presidential election

&tuck with him

(fter a surprisin!y comforta"!e ree!ection, Huo >h$eC #i!! ha$e to surmount asha.y economy and%%%


N

Argentina/s de.t default

Caught napping

Ho!dout creditors seiCe an (rentine ship in 'hana


N

railian politics

"ocal action

Aoters inore the Gor.ers+ 5arty+s trou"!es

Next in Asia

http://www.economist.com/node/21564541http://www.economist.com/node/21564541http://www.economist.com/node/21564541http://www.economist.com/node/21564541http://www.economist.com/node/21564542http://www.economist.com/node/21564542http://www.economist.com/node/21564542http://www.economist.com/node/21564540http://www.economist.com/node/21564540http://www.economist.com/node/21564540http://www.economist.com/node/21564541http://www.economist.com/node/21564541http://www.economist.com/node/21564541http://www.economist.com/node/21564541http://www.economist.com/node/21564542http://www.economist.com/node/21564542http://www.economist.com/node/21564542http://www.economist.com/node/21564540http://www.economist.com/node/21564540http://www.economist.com/node/21564540


17/51

N

Presidential politics in &outh !orea

ashing the .ig guys

The fami!yo#ned chae"o! are in e$eryone+s sihts in an e!ection that cou!d chane

outh Porea

Next in Asia

N

Politics in Australia

3and.agged

u!ia 'i!!ard !oses a spea.er, and !ashes out at the opposition !eader

Next in Asia

N



18/51

&ri "anka/s 6udiciary

$nter the goons

(n ominous attac. unsett!es the country+s udes

Next in Asia

N

Pakistan/s politics

The peace and love tour

The 5a.istani Ta!i"an- "ruta!, or simp!y misunderstood?

Next in Asia

N

The Philippines/ southern insurgency

It could .e peace

http://www.economist.com/node/21564602http://www.economist.com/node/21564602http://www.economist.com/node/21564602http://www.economist.com/node/21564596http://www.economist.com/node/21564596http://www.economist.com/node/21564596http://www.economist.com/node/21564611http://www.economist.com/node/21564611http://www.economist.com/node/21564602http://www.economist.com/node/21564602http://www.economist.com/node/21564602http://www.economist.com/node/21564596http://www.economist.com/node/21564596http://www.economist.com/node/21564596http://www.economist.com/node/21564611http://www.economist.com/node/21564611


19/51

Hopes ro# for an end to a "!oody and !onrunnin insurency

Next in ChinaN

China/s stockmarkets

"ike it/s 7888

Ghy does the #or!d+s most dynamic economy ha$e such a mori"und stoc.mar.et?

Next in China

N

Ti.et

&trangers in a strange land

( rare forein $isitor finds a >hinese tourism "oom



20/51

Next in China

N

anyan

Post'merger integration

Hon Pon+s ne# chief e6ecuti$e seems determined to !i$e do#n to his reputation

Next in *iddle $ast and Africa

N

+ordan and its king

As .eleaguered as ever

Pin ("du!!ah must ma.e s#ift and drastic reforms to reso!$e his !atest po!itica! and

economic%%%


N



21/51

&yria/s crisis

No side looks set to win soon

( "!oody sta!emate, for no#


N

ahrain

3ow the police recruit radicals

epression in Bahrain is continuin to a!ienate the hia maority


N

Iran and its currency crisis

A come.ack for the reformers(

>ou!d the currency crisis "rin "ac. the president+s reformist enemies?

http://www.economist.com/news/middle-east-and-africa/21564606-bloody-stalemate-now-no-side-looks-set-win-soonhttp://www.economist.com/news/middle-east-and-africa/21564606-bloody-stalemate-now-no-side-looks-set-win-soonhttp://www.economist.com/news/middle-east-and-africa/21564606-bloody-stalemate-now-no-side-looks-set-win-soonhttp://www.economist.com/node/21564604http://www.economist.com/node/21564604http://www.economist.com/node/21564604http://www.economist.com/node/21564607http://www.economist.com/node/21564607http://www.economist.com/node/21564607http://www.economist.com/news/middle-east-and-africa/21564606-bloody-stalemate-now-no-side-looks-set-win-soonhttp://www.economist.com/news/middle-east-and-africa/21564606-bloody-stalemate-now-no-side-looks-set-win-soonhttp://www.economist.com/news/middle-east-and-africa/21564606-bloody-stalemate-now-no-side-looks-set-win-soonhttp://www.economist.com/node/21564604http://www.economist.com/node/21564604http://www.economist.com/node/21564604http://www.economist.com/node/21564607http://www.economist.com/node/21564607http://www.economist.com/node/21564607


22/51


N

Israel/s coming election

&itting pretty

srae!+s !eader rec.ons he #i!! #in another term in an ear!y po!!


N

!enya/s parliamentarians

)ultures and hyenas

( ro# o$er 75s+ pay

Next in $urope

N



23/51

Italian politics

5ho will .e Italy/s next prime minister(

(s i!$io Ber!usconi seems to "e standin aside, the spot!iht is on 7ario 7onti and

the candidates%%%

Next in $urope

N

9reece and 9ermany

Angela/s Athens

'ermany+s chance!!or ma.es a trip to sina! her country+s ood#i!!

Next in $urope

N

3omelessness in 1rance

%own and out in Paris



24/51

To!erance has its !imits

Next in $uropeN

1rance/s government and .usiness

Angry pigeons

(n on!ine re$o!t forces the o$ernment into an em"arrassin ta6 c!im"do#n

Next in $urope

N

9ermany/s army

No shooting please, we/re 9erman

'ermans sti!! ha$e a uni*ue!y comp!icated re!ationship #ith their so!diers



25/51

Next in $urope

N

Charlemagne

No more 9rexit

But the euro Cone is sti!! stru!in to find a #ay of .eepin 'reece af!oat

Next in ritain

N

Politics

Tri.es of Tories

The >onser$ati$e 5arty increasin!y resem"!es a patch#or. of pressure roups% That

is a "ad sin for%%%

Next in ritain

N



26/51

Innovation centres

:oger, 5est 5ales

( sma!! Ge!sh airport has "ecome an un!i.e!y tech c!uster

Next in ritain

N

$nergy capacity

1ast, cheap and out of control

Britain+s enery mar.et is sti!! a mess, and a crunch is approachin

Next in ritain

N



27/51

+immy &avile

The harder they fall

(!!eations of se6ua! a"use "y its onetime ido! !ea$e the BB> in a pic.!e

Next in ritain

N

%emography

The .oomerang generation

Youn adu!ts ha$e "ecome re!uctant to f!y the fami!y nest

Next in ritain

N



28/51

3ospital takeovers

&ick .eds

The "est #ay of rescuin trou"!ed hospita!s may "e to a!!o# ta.eo$ers

Next in ritain

N

Plessey returns

Chips with everything

( "i name from the past hopes for a "riht future

Next in ritain

N

agehot

The oris and %ave show



29/51


30/51

Next in International

N

"ink rot

Cut short(

The daner of short #e" addresses

Next in &pecial report

N

1or richer, for poorer

'ro#in ine*ua!ity is one of the "iest socia!, economic and po!itica! cha!!enes of

our time% But%%%

Next in &pecial reportN



31/51

3istory

As you were

(fter a period on the #ane, ine*ua!ity is #a6in aain


N

"ike a piece of string

iCin the ap


N

"ike father, not like son

7easurin socia! mo"i!ity


N

http://www.economist.com/node/21564413http://www.economist.com/node/21564413http://www.economist.com/node/21564413http://www.economist.com/node/21564419http://www.economist.com/node/21564419http://www.economist.com/news/special-report/21564417-measuring-social-mobility-father-not-sonhttp://www.economist.com/news/special-report/21564417-measuring-social-mobility-father-not-sonhttp://www.economist.com/node/21564413http://www.economist.com/node/21564413http://www.economist.com/node/21564413http://www.economist.com/node/21564419http://www.economist.com/node/21564419http://www.economist.com/news/special-report/21564417-measuring-social-mobility-father-not-sonhttp://www.economist.com/news/special-report/21564417-measuring-social-mobility-father-not-son


32/51

The 0nited &tates

The rich and the rest

(merican ine*ua!ity is a ta!e of t#o countries


N

*akers and takers

(merica+s o$ernment redistri"utes, "ut not #e!!


N

Asia

Crony tigers, divided dragons

Ghy (sia, too, is "ecomin increasin!y une*ua!


N



33/51

"essons from Palanpur

7ore ine*ua!ity in an ndian $i!!ae is "a!anced "y reater mo"i!ity


N

"atin America

9ini .ack in the .ottle

(n une*ua! continent is "ecomin !ess so


N

&weden

The new model

( "it more une*ua!, a !ot more efficient

http://www.economist.com/node/21564422http://www.economist.com/node/21564422http://www.economist.com/news/special-report/21564411-unequal-continent-becoming-less-so-gini-back-bottlehttp://www.economist.com/news/special-report/21564411-unequal-continent-becoming-less-so-gini-back-bottlehttp://www.economist.com/news/special-report/21564411-unequal-continent-becoming-less-so-gini-back-bottlehttp://www.economist.com/node/21564412http://www.economist.com/node/21564412http://www.economist.com/node/21564412http://www.economist.com/node/21564422http://www.economist.com/node/21564422http://www.economist.com/news/special-report/21564411-unequal-continent-becoming-less-so-gini-back-bottlehttp://www.economist.com/news/special-report/21564411-unequal-continent-becoming-less-so-gini-back-bottlehttp://www.economist.com/news/special-report/21564411-unequal-continent-becoming-less-so-gini-back-bottlehttp://www.economist.com/node/21564412http://www.economist.com/node/21564412http://www.economist.com/node/21564412


34/51


N

Trade'offs

3aving your cake

4ess ine*ua!ity does not need to mean !ess efficiency


N

Policy prescriptions

A True Progressivism

Bo!d mo$es are needed to tac.!e ine*ua!ity and "oost ro#th at the same time

Next in usiness



35/51

N

The proposed merger of A$ &ystems and $A%&

!aputt

The co!!apse of a hue European defence merer !ea$es "oth firms damaed

Next in usiness

N

3uawei and ;T$

Put on hold

T#o "i >hinese te!ecoms firms come under fire in (merica

Next in usiness

N

5orking from home



36/51

-ut of sight, out of mind

5eop!e #ho #or. from home are !ess !i.e!y to "e promoted

Next in usiness

N

$ntrepreneurs in "atin America

The lure of Chilecon )alley

(s (merica shuts out immirant entrepreneurs, >hi!e #e!comes them

Next in usiness

N

&tart'0p Chile

&hut down Cumplo

( >hi!ean inno$ator "att!es to stay in "usiness

Next in usiness

N



37/51


38/51

Next in 1inance and economics

N

uttonwood

Precious relic

'o!d remains popu!ar, despite the dou"ts of economists


N

The I*1/s annual meetings

Time for a rethink

The fund ponders fisca! conso!idation


N

India/s credit rating

%on/t call me 6unk

ndia+s "att!e to retain its in$estmentrade credit ratin



39/51


N

*onte dei Paschi di &iena

*onte to clim.

The #or!d+s o!dest "an. p!ans its future


N

Iron ore

The lore of ore

The most important commodity after oi! deser$es more attention than it ets


N



40/51

1ree exchange

Concrete gains

(merica+s "i cities are !arer than Europe+s% That has important economic

conse*uences

Next in &cience and technology

N

The goes to the I&&



41/51

And this time it means .usiness

The first commercia! !aunch to the nternationa! pace tation

Next in &cience and technology

N

:eptilian micturition

That/s a relief

oftshe!! turt!es urinate throuh their mouths

Next in ooks and arts

N

The spread of disease

9erms and money

Ghere and #hen #i!! the ne6t pandemic emere?


N



42/51

New American fiction

9alaxies of colour

nsihts of an internet story


N

The .irth of neoli.eralism

New .rooms

Ho# three Aiennese thin.ers chaned the #or!d


N

1rancesco 9uardi/s )enice



43/51


44/51

The innovation race

3ow not to .e left .ehind

Ghy (merica cannot see that it is !osin traction

Next in usiness .ooks quarterly

N

The financial crisis

$asy to descri.e, hard to fix

The BB>Ms "usiness editor attempts to fi6 the economic mess sort of

Next in -.ituary

N



45/51


46/51

Next in $conomic and financial

indicatorsN

*arkets


indicators

N

Trade, exchange rates, .udget .alances and interest rates


indicators

N

http://www.economist.com/node/21564573http://www.economist.com/node/21564578http://www.economist.com/node/21564573http://www.economist.com/node/21564578


47/51

The $conomist commodity'price index

Print edition

N

Oct 13th 2012

Oct 20th 2012

Oct 2;th 2012

@o$ 3rd 2012

From the print edition Oct 13th 2012

http://www.economist.com/node/21564580http://www.economist.com/printedition/2012-10-13http://www.economist.com/node/21564580http://www.economist.com/printedition/2012-10-13


48/51

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Fo!!o#The Economist

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49/51

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50/51

7ost popu!ar

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51/51

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