Regional inequality is a hard problem to solve

THE political shock of Brexit and of the election of Donald Trump have led to new interest in the problem posed by regional inequality. Both shocks drew support from places to which recent economic trends have not been especially kind, and both were reactions, at least in part, against the economic success enjoyed by elites concentrated in a relatively small number of rich metropolitan areas. Even economists, whose “nihilism…about what we can do to help struggling places in the U.S. is, quite frankly, strange” (in the words of Adam Ozimek) have taken to reconsidering their priors on the issue. Myself included; as I noted recently:

The economic literature is pretty clear that moving people from low productivity places to high productivity places is very good for both the people that move and the economy as a whole. It’s also pretty clear that place-based policies designed to rejuvenate regions which have lost their economic reason for being tend not to work very well. And one logical…Continue reading

This post was originally published in the Economist.

Advertisements
Regional inequality is a hard problem to solve

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s