Bank of England governor Mark Carney has issued a warning against continuing globalization. Suggesting that those left behind may turn on capitalism and the establishment altogether. The comments were made by the governor at a speech at Liverpool’s John Moores university.
He suggested that increased globalization combined with tax evasion by large companies was contributing to the ongoing disillusionment with the establishment. He also explained that many felt that the lowering of trade barriers between countries contributed to the lowering of wages and insecure work. There was also a feeling that companies were “rootless” and that they felt they could come and go as they please with little regards for staff or tax in the countries that they operate in.
He said that better efforts needed to be made in order to ensure that living standards for the poorest in society were kept up, and not allowed to lag behind. He also suggested that a move towards more protectionism, as witnessed by the “Brexit” campaign and Donald Trump’s victory in the US presidential elections, would be detrimental to economies all over the world.
Figures revealed that this decade will be the first since the 30’s that living standards have receded, this is being felt and is causing political and economic waves in the world’s major economies. Just yesterday the Italians voted against constitutional reforms that would’ve allowed the government greater powers to govern. In what was seen as a further attempt at giving the establishment a bloody nose, by voting for populist principles.
The governor suggested that it was up to governments to ensure that their poorest people weren’t left behind, whilst he hadn’t suggested a redistribution of wealth, some countries have been exploring the idea of a minimum income for all citizens. How this works globally is uncertain, but it’s well known that in Finland they’ve been experimenting with the idea, as have Canada in the past. It was also previously proposed more than once in the US, though never actually taken on. It’s thought to be a politically toxic issue that many politicians wouldn’t have the stomach for.
Joseph is a 34 year old freelance writer from London. He has a wide interest in politics and specialises in the subject. He's also a blog writer in his spare time.