Six ways economies can tackle the wealth divide

Economic inequality to keep rising in 2019

Rising economic inequality will remain a pressing global problem in 2019 - it drags down growth and destabilises societies, putting low- to middle-income earners in increasingly precarious situations as fewer people control a growing share of income and wealth, writes Allianz Global Investors' Karl Happe.

While the biggest impact is on those on the lower end of the economic spectrum, economic inequality has ramifications for everyone. Government revenue streams are becoming stretched as tax coffers shrink and welfare expenses rise; this can reduce the level and quality of government services across the board. And, as the divide between the ‘haves' and ‘have-nots' expands, resurgent populism is threatening to create headwinds for economies and markets. Given these tensions, couldn't we construct an economic model that maintains the benefits of capitalist production while limiting its tende...