Inequality and economic models

This project seeks to examine why capitalism has been competitive for over 500 years, why it failed in the 20th century and was replaced by socialism in a large part of the world, and why the socialist societies did not succeed and eventually made a transition back to capitalism.The key hypothesis is that the increase in income inequalities between 1500 and 1800 enabled a raising of savings and investment rates and spurred economic growth. However, the costs of high income inequalities have become larger than the benefits of the prior high savings-investment rates. This is leading to the emergence of a ‘new socialism’ that will promote lower income inequality.

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Experts on topic

Vladimir Popov
Vladimir Popov
Research Director in Economics & Political sciences, DOC Research Institute

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