There is a growing possibility that the COVID-19 crisis will mark the end of the growth model born four decades ago with the Reagan-Thatcher revolution, China’s embrace of capitalism, and the demise of the Soviet Union. The small government, free-market template suddenly looks terribly outdated. Instead of regarding growth as the ultimate solution to inequality, advanced economies will need to tackle distributional issues head on. It is to be hoped that they will be spared the convulsions that often accompany structural and policy changes of such magnitude.
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