In The News: Bank of England Governor Warns About Popular Disillusion With Capitalism, People Across Europe Lose Trust In Globalization

in #news8 years ago

In an astonishing speech delivered yesterday, the Bank of England Governor, Mark Carney, has warned that people will turn their backs on free and open markets unless something is done to help those left behind by the financial crisis.

The usually dour Canadian technocrat went on the war path against the injustices of globalization during a ferociously outspoken intervention, saying most people felt it had just allowed the rich to get even richer.



Mark Carney delivers the Roscoe Lecture at John Moores University in Liverpool
[Photo Source]


In a surprise statement he also warned that Britain is experiencing its first “lost decade” of economic growth for 150 years, and said that it was “incredible” that real incomes had not risen in the past 10 years – a decade which included the financial crisis and a faltering recovery ever since.

I quote below some points from the speech he made

We need to move towards more inclusive growth where everyone has a stake in globalization

Rather than a new golden era, globalization is associated with low wages, insecure employment, stateless corporations and striking inequalities

In fact, the success of populist, anti-establishment movements, such as Brexit, the rise of the French Front National and the recent Italian referendum, has been linked to dissatisfaction with globalization across Europe. Middle-class incomes in Western economies have suffered with the growth of emerging-market manufacturing, like China, India and other countries, and also the widespread automation, where robots are replacing humans almost everywhere.


Sources for the news and further reading


  1. http://www.express.co.uk/finance/city/740106/Globalisation-Bank-of-England-Mark-Carney-inequality-populism-Brexit-Trump
  2. http://www.itv.com/news/2016-12-05/sharper-disparities-in-inequality-despite-benefits-of-globalisation-bank-of-england-governor-says/
  3. http://www.bbc.com/news/business-38214729
  4. http://www.telegraph.co.uk/business/2016/12/05/mark-carney-warns-first-lost-decade-150-years-brands-eurozone/
  5. http://www.bbc.com/news/business-38210169
  6. http://www.mirror.co.uk/news/uk-news/robots-steal-15-million-british-9399518

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