If you are unskilled though you have no pricing power You can only get your

If you are unskilled though you have no pricing power

This preview shows page 16 - 17 out of 25 pages.

If you are unskilled, though, you have no pricing power. You can only get your wages up by having poli- ticians raise the minimum wage. When that happens, all the prices jump because suddenly everybody has the ex- tra cash. So you feel gypped. You got a wage increase on paper, but no actual benefit. This crowd turns their anger on Washington and on foreigners. The reality is that they were, and are still, getting left behind even when the econ- omy is powering ahead. These folks respond to this pain by voting right. The answer is simple. The quants and statisticians can measure the aggregate beautifully, but they are not enough focused on the plight of the individual. Individuals matter in society. Individuals vote. We are right about the data points but wrong about the pain. That is giving rise to populism. It is not necessary to overcome globalization or shatter capitalism. It is essential to organize it better. JÖRG ASMUSSEN Managing Director and Head of Mergers and Acquisitions for Europe, Lazard, and former Member of the Executive Board, European Central Bank I t is not just about the money. Donald Trump’s victory over his liberal rival candidate, the British referendum on leaving the European Union, the implosion of the tra- ditional party system in France, the new governing coali- tions in Italy and Austria, the success of the Alternative für Deutschland in Germany—a populist dynamic has been on the rise recently on many scenes, signaling a growing polarization of society: top and bottom, rich and poor, content and unsatisfied, mobile and settled, urban and ru- ral, cosmopolitan and local. The French geographer Christophe Guilluy spoke of a peri-urban world, which loses connection to the global developments. Those living in the periphery of the old in- dustrial parks and in the rural areas are united by a two- fold insecurity: a financial and a cultural one. According to Guilluy’s evaluation, this group amounts to 60 percent of the populace in France, for the United States of America, estimations amount to over 70 percent, and similar fig- ures apply to other countries, explaining the popularity in elections. Maybe David Goodhart succeeded in formulating the catchiest concept for the explanation of this schism, in that he differentiates between the “anywheres” and the “somewheres,” between the mobile, cosmopolitan peo- ple, whose education and further qualities enable them to live in any global city, and their stationary counterparts, who live in their tight and stable social and geographical environment. The dividing line between the “anywheres” and the “somewheres” is never as evident as looking to the subject of migration: the “anywheres” understand immigration as an advantage and enrichment, the “somewheres” as a threat.
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