Macroeconomic Prosperity and Social Inclusion: From Long-Run History to the Shock of May 2014

Abstract

Can it seriously be doubted that social inclusion, social peace, and individual flourishing are highly desirable attributes of a good society? How macroeconomic growth is related to these is a fundamental issue for economic and social development and the policies needed to achieve them. Can an economic policy framework that is not interested in fostering social inclusion as such, only macroeconomic growth, actually somehow achieve a good social outcome? Socio-economic equality is at the heart of the issue, for it seems quite clear from history and the present world that a large cost of extreme inequality is social conflict and social repression. And in turn, trying to maintain the peace in such a situation, as China and the Middle East and recently Vietnam, Turkey, and Brazil, and even the United States, have found, is expensive financially and socially.