IMF Worried that High Inequality Could Threaten Global Capitalism — Sharmini Peries interviews Michael Roberts

MICHAEL ROBERTS: I think the IMF, and that clip shows it, is worried that the huge increase in inequality of income and wealth in many countries, like the US and the UK, over the last 20 or 30 years is reaching such extreme levels that there is serious danger of social and political unrest. The great status quo of globalization and neoliberal policies and international activity in the direction of big business is being threatened by this high inequality. Their economists have now started to switch round and have found evidence to show that it doesn't really make a lot of difference to growth if big corporations and CEOs at the top of big companies who are earning fat salaries are taxed more in order to redistribute income effectively to those people who need it more and can be more productive.

In fact, their evidence shows that a higher rate of marginal tax has little or no effect on growth, and you could raise it from the levels which, Donald Trump's talking about knocking it down to God knows where, 15% or lower. Well, the marginal rate according to the IMF economists in their latest report could be as high as 60% or 70% and it would make little difference to growth, but it will make a significant difference to improving the redistribution of income....

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IMF Worried that High Inequality Could Threaten Global Capitalism

Sharmini Peries interviews Michael Roberts