Columnist ‘Free exchange’ /The Economist, February 15th 2020/ put it right: we witness an old/new type of trickle-up economics. Wage gains at the bottom of the income distribution helped to sustain the longest /128 months/ economic expansion on record in America.
Yes, the forces pushing in the direction of inequality are mulishly persistent, that is why both governments and employers should enforce minimum-wage rates.
In Europe, a complete overhaul of taxation should help to raise net real wages in order to maintain the present level of consumption of our economies. All EU members will need this boost in the 2020s.
Ludwig Erhard was right: we need prosperity4all.
Governor Matolcsy, MNB, the Central Bank of Hungary