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.
Latest Related Research
Income security and the quest for dignity in an unequal world
An increasing number of people are registering dissatisfaction with their lives by engaging in anti-social and self-harming activities. One remedy that is receiving increasing attention is the payment of...
Brexit: Are the British elite up to the task?
Continental Europe experienced a boost in development, while recovering from the destruction of World War II and especially after the creation of European Economic Community (EEC) in 1957 by...
Experts on topic
