The Rise of Inequality (B)

The world is currently seeing a rise of populist leaders in both Europe and the US (Donald Trump), as well as in some emerging markets. Is this linked to the rise in inequality over time, whereby many of the gains have accrued to the richest 1%? This short case provides the background and statistics underpinning the rise in income and wealth inequality in advanced economies, and sets up a discussion on why we should care about inequality. Subsequently, it explores the link between inequality and equality of opportunity, political instability, financial crises and economic growth. It closes by highlighting where businesses are truly a force for good and the circumstances in which a greater focus on distribution is warranted.

The objective is to facilitate an understanding of the interlinked issues of politics, economics, distribution and growth. The case highlights the rise in income inequality and whether this is linked to political shifts in Europe and the US. It facilitates understanding of when and where inequality matters, the consequences of rising inequality, and the circumstances where business leaders must pay more attention to distributional aspects.