Episode 11: Inequality and Social Division: An Economic Perspective
Globalization and technological change have reshaped the world economy and have been vital sources of economic growth and prosperity in the United States and Germany for a decade. Yet polarization and political discontent persist despite rising incomes and low unemployment. Both countries have this in common despite different economic models.
There has to be more to the story. What are the insights we can gain from economic research into political sentiments and voter behavior? A key factor is inequality. AICGS will be working on this issue intensively in the coming months and years in a new project, Social Divisions and Questions of Identity in Germany and the United States: Consequences for Politics and Society. An Exchange Outside of the Metropolitan Areas.
There is also the issue of trade. It’s the engine of the German economy, but the Trump administration has taken aim at the international trading system. Add to that the question of how the United States and Europe should seek to address challenges from China—do we have a common agenda, or will this drive the transatlantic partnership asunder?
When you look at these questions closely, there are clear similarities, not only differences, which point toward the importance of common solutions to the problems we face.
On this episode of The Zeitgeist, Jeff Rathke and Peter Rashish speak with Professor Marcel Fratzscher, a prominent German economist and President of DIW Berlin, one of that country’s leading economic research institutes, about the broader societal challenges posed by elements of globalization. He is also a Professor of Macroeconomics and Finance at Humboldt University Berlin.
Jeff Rathke, President, AICGS
Prof. Fratzscher also spoke at AICGS about the economic challenges facing the United States and Germany as part of our Geoeconomics Speaker Series, kindly supported by Allianz.