I want to to start with a quote by German writer and literary critic Goethe
German writer and literary critic Goethe
German writer and literary critic Goethe Watsky he was actually from Berlin and
Watsky he was actually from Berlin and
Watsky he was actually from Berlin and in the Year 1931 he wrote the people
in the Year 1931 he wrote the people
in the Year 1931 he wrote the people understand most things wrong but they
understand most things wrong but they
understand most things wrong but they feel most things correctly and I think
feel most things correctly and I think
feel most things correctly and I think many of us today ask how is it possible
many of us today ask how is it possible
many of us today ask how is it possible that 61 million Americans have voted for
that 61 million Americans have voted for
that 61 million Americans have voted for a president donald trump who polarizes
a president donald trump who polarizes
a president donald trump who polarizes society who has been openly against
society who has been openly against
society who has been openly against immigration and against immigrants and
immigration and against immigrants and
immigration and against immigrants and been very negative what’s women how come
been very negative what’s women how come
been very negative what’s women how come 11 million French people actually have
11 million French people actually have
11 million French people actually have voted for a party and a candidate who is
voted for a party and a candidate who is
voted for a party and a candidate who is very center for big against foreigners
very center for big against foreigners
very center for big against foreigners how come the majority of British
how come the majority of British
how come the majority of British citizens had actually decided that they
citizens had actually decided that they
citizens had actually decided that they want to leave the European Union and you
want to leave the European Union and you
want to leave the European Union and you can go on and on and on in most Western
can go on and on and on in most Western
can go on and on and on in most Western countries we ask ourselves including in
countries we ask ourselves including in
countries we ask ourselves including in Germany how come so many people are
Germany how come so many people are
Germany how come so many people are politically dissatisfied and vote for
politically dissatisfied and vote for
politically dissatisfied and vote for extreme parties or don’t vote at all
extreme parties or don’t vote at all
extreme parties or don’t vote at all what is really behind it what do they
what is really behind it what do they
what is really behind it what do they really perceive what are the facts that
really perceive what are the facts that
really perceive what are the facts that they may get wrong or maybe others
they may get wrong or maybe others
they may get wrong or maybe others people gets wrong or in particular what
people gets wrong or in particular what
people gets wrong or in particular what do they feel before I get to that
do they feel before I get to that
do they feel before I get to that question my concern is that we live in a
question my concern is that we live in a
question my concern is that we live in a very unusual time where which I would
very unusual time where which I would
very unusual time where which I would describe as a time of the three piece of
describe as a time of the three piece of
describe as a time of the three piece of populism of protectionism and of
populism of protectionism and of
populism of protectionism and of paralysis so lack of change lack of
paralysis so lack of change lack of
paralysis so lack of change lack of reform lack of adjustment particular on
reform lack of adjustment particular on
reform lack of adjustment particular on behalf of politicians and political
behalf of politicians and political
behalf of politicians and political parties and populism is not really
parties and populism is not really
parties and populism is not really something for or against specific issues
something for or against specific issues
something for or against specific issues it’s about polarizing it’s being against
it’s about polarizing it’s being against
it’s about polarizing it’s being against something and it’s about being exposing
something and it’s about being exposing
something and it’s about being exposing other people and trying to say we are
other people and trying to say we are
other people and trying to say we are different
different
different it’s against immigration it’s often
it’s against immigration it’s often
it’s against immigration it’s often against women it’s often against
against women it’s often against
against women it’s often against minorities it’s often against weaker
minorities it’s often against weaker
minorities it’s often against weaker people poor people people who are
people poor people people who are
people poor people people who are different from us
different from us
different from us and we see that in every walk of life we
and we see that in every walk of life we
and we see that in every walk of life we see that it comes with a very strong
see that it comes with a very strong
see that it comes with a very strong nationalism that we see in countries
nationalism that we see in countries
nationalism that we see in countries people blaming foreigners blaming the
people blaming foreigners blaming the
people blaming foreigners blaming the euro blaming Europe blaming the US or
euro blaming Europe blaming the US or
euro blaming Europe blaming the US or Asia or China for their own own mistakes
Asia or China for their own own mistakes
Asia or China for their own own mistakes that they commit domestically it’s
that they commit domestically it’s
that they commit domestically it’s against other people and we see the
against other people and we see the
against other people and we see the second element protectionism this
second element protectionism this
second element protectionism this populism of course is closely linked to
populism of course is closely linked to
populism of course is closely linked to that that means we have to look out for
that that means we have to look out for
that that means we have to look out for ourselves and we have to close our
ourselves and we have to close our
ourselves and we have to close our borders we have to kind of separate
borders we have to kind of separate
borders we have to kind of separate ourselves from others and it’s in every
ourselves from others and it’s in every
ourselves from others and it’s in every area of our life in also of our economic
area of our life in also of our economic
area of our life in also of our economic life in terms of trade in terms of
life in terms of trade in terms of
life in terms of trade in terms of financial markets and capital and also
financial markets and capital and also
financial markets and capital and also people moving across borders and it’s
people moving across borders and it’s
people moving across borders and it’s about paralysis that what we see in our
about paralysis that what we see in our
about paralysis that what we see in our time is that even though there is a lot
time is that even though there is a lot
time is that even though there is a lot of wealth and a lot of welfare there’s
of wealth and a lot of welfare there’s
of wealth and a lot of welfare there’s really a lack of reform there’s really
really a lack of reform there’s really
really a lack of reform there’s really paralysis in many political systems of
paralysis in many political systems of
paralysis in many political systems of the West that they’re not able to cope
the West that they’re not able to cope
the West that they’re not able to cope with this populism and the protectionism
with this populism and the protectionism
with this populism and the protectionism to really ask what can we do the big
to really ask what can we do the big
to really ask what can we do the big miracle and I’m coming back to the quote
miracle and I’m coming back to the quote
miracle and I’m coming back to the quote of two hearts keys we have an incredible
of two hearts keys we have an incredible
of two hearts keys we have an incredible amount of welfare and wealth in our
amount of welfare and wealth in our
amount of welfare and wealth in our societies never before in history have
societies never before in history have
societies never before in history have so many people have such a high life
so many people have such a high life
so many people have such a high life expectancy such a high life standard of
expectancy such a high life standard of
expectancy such a high life standard of living and at the same time if you ask
living and at the same time if you ask
living and at the same time if you ask people so how do you feel about society
people so how do you feel about society
people so how do you feel about society more than half and in some cases like
more than half and in some cases like
more than half and in some cases like Germany like the u.s. seventy percent of
Germany like the u.s. seventy percent of
Germany like the u.s. seventy percent of the people tell you we feel that social
the people tell you we feel that social
the people tell you we feel that social inequality in our countries is too high
inequality in our countries is too high
inequality in our countries is too high so how come that on the one hand they’re
so how come that on the one hand they’re
so how come that on the one hand they’re doing incredibly well have jobs have
doing incredibly well have jobs have
doing incredibly well have jobs have have income health something that our
have income health something that our
have income health something that our parents grandparents great-grandparents
parents grandparents great-grandparents
parents grandparents great-grandparents never had at the same time say we feel
never had at the same time say we feel
never had at the same time say we feel social inequalities to hide we don’t
social inequalities to hide we don’t
social inequalities to hide we don’t feel satisfied with how our society
feel satisfied with how our society
feel satisfied with how our society functions and oftentimes the elites say
functions and oftentimes the elites say
functions and oftentimes the elites say well you know they just understand
well you know they just understand
well you know they just understand things wrong they just get the facts
things wrong they just get the facts
things wrong they just get the facts wrong we just you know they’re
wrong we just you know they’re
wrong we just you know they’re manipulated by people by politicians
manipulated by people by politicians
manipulated by people by politicians even by academics but are they really
even by academics but are they really
even by academics but are they really wrong and if you look at the facts we
wrong and if you look at the facts we
wrong and if you look at the facts we see a very different picture 40% of
see a very different picture 40% of
see a very different picture 40% of workers in countries like the United
workers in countries like the United
workers in countries like the United States or Germany
States or Germany
States or Germany today have lower real wages than they
today have lower real wages than they
today have lower real wages than they had 20 years ago so they have a lower
had 20 years ago so they have a lower
had 20 years ago so they have a lower purchasing power with what they can do
purchasing power with what they can do
purchasing power with what they can do 40% of Americans 40% of Germans and in
40% of Americans 40% of Germans and in
40% of Americans 40% of Germans and in many other countries of the West as well
many other countries of the West as well
many other countries of the West as well had no savings have nothing when their
had no savings have nothing when their
had no savings have nothing when their children need something we want to
children need something we want to
children need something we want to participate in a school trip when they
participate in a school trip when they
participate in a school trip when they need a new fridge
need a new fridge
need a new fridge they’d have no money to spend on it when
they’d have no money to spend on it when
they’d have no money to spend on it when they come to old age and they retire
they come to old age and they retire
they come to old age and they retire they have nothing to rely on except in
they have nothing to rely on except in
they have nothing to rely on except in some cases some social transfers so 40%
some cases some social transfers so 40%
some cases some social transfers so 40% basically are highly dependent on others
basically are highly dependent on others
basically are highly dependent on others on the state to provide for them we see
on the state to provide for them we see
on the state to provide for them we see that poverty rates and many Western
that poverty rates and many Western
that poverty rates and many Western countries have increased and we see that
countries have increased and we see that
countries have increased and we see that a lot of people feel very insecure and
a lot of people feel very insecure and
a lot of people feel very insecure and this ideal that many of us have and our
this ideal that many of us have and our
this ideal that many of us have and our parents and grandparents was always
parents and grandparents was always
parents and grandparents was always everywhere in the West we wanted our
everywhere in the West we wanted our
everywhere in the West we wanted our children are better off than we are
children are better off than we are
children are better off than we are today we want to make a better life for
today we want to make a better life for
today we want to make a better life for our children and grandchildren many
our children and grandchildren many
our children and grandchildren many people today realize that no longer
people today realize that no longer
people today realize that no longer works because more and more people on a
works because more and more people on a
works because more and more people on a typical employment or no employment at
typical employment or no employment at
typical employment or no employment at all even if they find jobs that work to
all even if they find jobs that work to
all even if they find jobs that work to very low wages which are far too low to
very low wages which are far too low to
very low wages which are far too low to make a living so they need additional
make a living so they need additional
make a living so they need additional money from the government or cannot
money from the government or cannot
money from the government or cannot provide for old age they have precarious
provide for old age they have precarious
provide for old age they have precarious job arrangements so they can lose their
job arrangements so they can lose their
job arrangements so they can lose their job any moment any time very quickly if
job any moment any time very quickly if
job any moment any time very quickly if the employer decides so so we see also
the employer decides so so we see also
the employer decides so so we see also there that people are worried about
there that people are worried about
there that people are worried about their future about their jobs what will
their future about their jobs what will
their future about their jobs what will become of my job my opportunity to
become of my job my opportunity to
become of my job my opportunity to create my own life take responsibility
create my own life take responsibility
create my own life take responsibility in my own hand so if we look at the
in my own hand so if we look at the
in my own hand so if we look at the facts the people are actually not that
facts the people are actually not that
facts the people are actually not that wrong because social inequality has
wrong because social inequality has
wrong because social inequality has increased tremendously now you can say
increased tremendously now you can say
increased tremendously now you can say so what and from many perspectives some
so what and from many perspectives some
so what and from many perspectives some people say look that’s how a market
people say look that’s how a market
people say look that’s how a market economy works it creates winners and
economy works it creates winners and
economy works it creates winners and losers is that fair
losers is that fair
losers is that fair well you know every one of us has a
well you know every one of us has a
well you know every one of us has a different understanding of what is fair
different understanding of what is fair
different understanding of what is fair or just or unjust I as an economist I’m
or just or unjust I as an economist I’m
or just or unjust I as an economist I’m interested in the cost and the economic
interested in the cost and the economic
interested in the cost and the economic cost and the objective cost how that
cost and the objective cost how that
cost and the objective cost how that influences many dimensions economic
influences many dimensions economic
influences many dimensions economic political and social and he’s seen many
political and social and he’s seen many
political and social and he’s seen many academic studies showing now that
academic studies showing now that
academic studies showing now that higher inequality within a society
higher inequality within a society
higher inequality within a society creates less economic growth less
creates less economic growth less
creates less economic growth less welfare less the pool of something that
welfare less the pool of something that
welfare less the pool of something that can then be distributed so it makes a
can then be distributed so it makes a
can then be distributed so it makes a lot of people all people worse off we
lot of people all people worse off we
lot of people all people worse off we see it in many other areas people with
see it in many other areas people with
see it in many other areas people with low income have a substantially worse
low income have a substantially worse
low income have a substantially worse health than people with a high income
health than people with a high income
health than people with a high income three times higher is the probability of
three times higher is the probability of
three times higher is the probability of men dying before the age of 65 if they
men dying before the age of 65 if they
men dying before the age of 65 if they have a low income compared to when they
have a low income compared to when they
have a low income compared to when they have a high income we see it in terms of
have a high income we see it in terms of
have a high income we see it in terms of poverty rates and poverty in the Western
poverty rates and poverty in the Western
poverty rates and poverty in the Western world is not in most countries at least
world is not in most countries at least
world is not in most countries at least that they don’t have housing or food on
that they don’t have housing or food on
that they don’t have housing or food on health care it’s about social
health care it’s about social
health care it’s about social participation they have such low income
participation they have such low income
participation they have such low income that they cannot participate in
that they cannot participate in
that they cannot participate in activities going here to an event like
activities going here to an event like
activities going here to an event like this going to the movie theater saying
this going to the movie theater saying
this going to the movie theater saying that the children on school trips or
that the children on school trips or
that the children on school trips or doing things that people do among
doing things that people do among
doing things that people do among themselves to be part of society so this
themselves to be part of society so this
themselves to be part of society so this poverty rate has increased substantially
poverty rate has increased substantially
poverty rate has increased substantially and the social participation has
and the social participation has
and the social participation has decreased and it has a very high
decreased and it has a very high
decreased and it has a very high political cost then people who have low
political cost then people who have low
political cost then people who have low income rarely go to votes and if they go
income rarely go to votes and if they go
income rarely go to votes and if they go to vote they vote for extreme parties
to vote they vote for extreme parties
to vote they vote for extreme parties because that is satisfied and they
because that is satisfied and they
because that is satisfied and they really want something different so it’s
really want something different so it’s
really want something different so it’s also a threat to a functional democracy
also a threat to a functional democracy
also a threat to a functional democracy so in all areas we see inequality that
so in all areas we see inequality that
so in all areas we see inequality that we have today has massive cost economic
we have today has massive cost economic
we have today has massive cost economic cost social cost and a political cost so
cost social cost and a political cost so
cost social cost and a political cost so the big question is so what what what do
the big question is so what what what do
the big question is so what what what do we do about it
we do about it
we do about it what what actually can we do and for
what what actually can we do and for
what what actually can we do and for that we first of all need to understand
that we first of all need to understand
that we first of all need to understand what’s really behind it what’s causing
what’s really behind it what’s causing
what’s really behind it what’s causing that inequality and many people argue
that inequality and many people argue
that inequality and many people argue well you know it’s it’s a functioning
well you know it’s it’s a functioning
well you know it’s it’s a functioning market economy and as I said before
market economy and as I said before
market economy and as I said before that’s kind of the ideal view in
that’s kind of the ideal view in
that’s kind of the ideal view in particular of economists who say we have
particular of economists who say we have
particular of economists who say we have a great market economy it creates a lot
a great market economy it creates a lot
a great market economy it creates a lot of welfare and yes you have losers and
of welfare and yes you have losers and
of welfare and yes you have losers and you have winners and that’s just how it
you have winners and that’s just how it
you have winners and that’s just how it is but my key argument is when you look
is but my key argument is when you look
is but my key argument is when you look at the facts the key driver behind that
at the facts the key driver behind that
at the facts the key driver behind that is not globalization it’s not that
is not globalization it’s not that
is not globalization it’s not that markets are functioning so great that
markets are functioning so great that
markets are functioning so great that the single most important factor behind
the single most important factor behind
the single most important factor behind it is the lack of equality of
it is the lack of equality of
it is the lack of equality of opportunity very few or many people
opportunity very few or many people
opportunity very few or many people today invest in societies don’t have the
today invest in societies don’t have the
today invest in societies don’t have the to develop their own skills and talents
to develop their own skills and talents
to develop their own skills and talents to bring them into society in the labor
to bring them into society in the labor
to bring them into society in the labor market often times in early age early
market often times in early age early
market often times in early age early childhood education is so poor for many
childhood education is so poor for many
childhood education is so poor for many that at the age of five and six they
that at the age of five and six they
that at the age of five and six they lack the necessary skills to really
lack the necessary skills to really
lack the necessary skills to really enter school and take them and benefit
enter school and take them and benefit
enter school and take them and benefit from that so often not often omits from
from that so often not often omits from
from that so often not often omits from very early on children don’t have the
very early on children don’t have the
very early on children don’t have the same opportunities to access education
same opportunities to access education
same opportunities to access education develop the talents and abilities and we
develop the talents and abilities and we
develop the talents and abilities and we see that also in terms of the outcome we
see that also in terms of the outcome we
see that also in terms of the outcome we see that people who are born in families
see that people who are born in families
see that people who are born in families with low income and low education don’t
with low income and low education don’t
with low income and low education don’t have a chance to really get where I have
have a chance to really get where I have
have a chance to really get where I have a much worse chances to get a good
a much worse chances to get a good
a much worse chances to get a good education good ability to enter the
education good ability to enter the
education good ability to enter the labor market and get a good job get good
labor market and get a good job get good
labor market and get a good job get good income and really make something out of
income and really make something out of
income and really make something out of their life so more than half of every
their life so more than half of every
their life so more than half of every young person’s income today is
young person’s income today is
young person’s income today is determined by two factors by the
determined by two factors by the
determined by two factors by the education level and the income of their
education level and the income of their
education level and the income of their parents so it’s highly dependent on what
parents so it’s highly dependent on what
parents so it’s highly dependent on what family you are born in what determines
family you are born in what determines
family you are born in what determines your change your chance your destiny at
your change your chance your destiny at
your change your chance your destiny at least in economic terms in life so we
least in economic terms in life so we
least in economic terms in life so we have low very low mobility across
have low very low mobility across
have low very low mobility across generations but we also have very low
generations but we also have very low
generations but we also have very low mobility within generations so people
mobility within generations so people
mobility within generations so people who are poor and we have a low income
who are poor and we have a low income
who are poor and we have a low income have low skills and have therefore when
have low skills and have therefore when
have low skills and have therefore when they’re young a relatively poor job they
they’re young a relatively poor job they
they’re young a relatively poor job they have much harder today to really move up
have much harder today to really move up
have much harder today to really move up have a better job have a better income
have a better job have a better income
have a better job have a better income then they had twenty or thirty or forty
then they had twenty or thirty or forty
then they had twenty or thirty or forty years ago so even there the mobility
years ago so even there the mobility
years ago so even there the mobility does not depend entirely on your skills
does not depend entirely on your skills
does not depend entirely on your skills on you effort on you will what you want
on you effort on you will what you want
on you effort on you will what you want to make out of your life but very much
to make out of your life but very much
to make out of your life but very much in what situation you are so have cross
in what situation you are so have cross
in what situation you are so have cross generations you have within generations
generations you have within generations
generations you have within generations but you also have a huge inequality in
but you also have a huge inequality in
but you also have a huge inequality in rising inequality in some instances
rising inequality in some instances
rising inequality in some instances across groups within society and one
across groups within society and one
across groups within society and one very obvious case is the difference
very obvious case is the difference
very obvious case is the difference between men and women in Western
between men and women in Western
between men and women in Western societies the gender pay gap is on
societies the gender pay gap is on
societies the gender pay gap is on average 21 percent which means for every
average 21 percent which means for every
average 21 percent which means for every one euro a man earns per hour the woman
one euro a man earns per hour the woman
one euro a man earns per hour the woman earns 79 cents
earns 79 cents
earns 79 cents and it’s not because women have lower
and it’s not because women have lower
and it’s not because women have lower education because they don’t women have
education because they don’t women have
education because they don’t women have a higher probability of getting a
a higher probability of getting a
a higher probability of getting a high-school degree they have a higher
high-school degree they have a higher
high-school degree they have a higher probability of going to university they
probability of going to university they
probability of going to university they usually do this in a shorter time period
usually do this in a shorter time period
usually do this in a shorter time period with a better grade with a lower dropout
with a better grade with a lower dropout
with a better grade with a lower dropout rate but it means comforted when it
rate but it means comforted when it
rate but it means comforted when it comes to the labour market they faced
comes to the labour market they faced
comes to the labour market they faced huge discrimination because the state
huge discrimination because the state
huge discrimination because the state does not provide for instance childcare
does not provide for instance childcare
does not provide for instance childcare facilities where the children can can be
facilities where the children can can be
facilities where the children can can be or which can really help families in
or which can really help families in
or which can really help families in particular women mothers to cope you
particular women mothers to cope you
particular women mothers to cope you have this huge discrimination in the
have this huge discrimination in the
have this huge discrimination in the labor market that women often face a
labor market that women often face a
labor market that women often face a glass ceiling say I want to have a
glass ceiling say I want to have a
glass ceiling say I want to have a career but the very male-dominated
career but the very male-dominated
career but the very male-dominated management often makes it impossible so
management often makes it impossible so
management often makes it impossible so we see it in all dimensions and groups
we see it in all dimensions and groups
we see it in all dimensions and groups across groups in society that some
across groups in society that some
across groups in society that some people a lot of people I’m not talking
people a lot of people I’m not talking
people a lot of people I’m not talking about minorities I’m talking about major
about minorities I’m talking about major
about minorities I’m talking about major artis don’t have the same opportunities
artis don’t have the same opportunities
artis don’t have the same opportunities the same equal opportunities at others
the same equal opportunities at others
the same equal opportunities at others and that’s a single most important
and that’s a single most important
and that’s a single most important driving factor behind that inequality
driving factor behind that inequality
driving factor behind that inequality that we see so some people are able to
that we see so some people are able to
that we see so some people are able to benefit from technological change
benefit from technological change
benefit from technological change some people are able to benefit from
some people are able to benefit from
some people are able to benefit from globalization others are not there to me
globalization others are not there to me
globalization others are not there to me is the key factor now what do we do
is the key factor now what do we do
is the key factor now what do we do about it and you have two camps on the
about it and you have two camps on the
about it and you have two camps on the politically right and politically left
politically right and politically left
politically right and politically left people say yes we recognize inequality
people say yes we recognize inequality
people say yes we recognize inequality is a problem it has a cost for society
is a problem it has a cost for society
is a problem it has a cost for society and therefore we need to increase the
and therefore we need to increase the
and therefore we need to increase the welfare state we need to redistribute
welfare state we need to redistribute
welfare state we need to redistribute more through transfers and services you
more through transfers and services you
more through transfers and services you have the political people more around
have the political people more around
have the political people more around the middle the Liberals in others who
the middle the Liberals in others who
the middle the Liberals in others who say no inequality is not a problem
say no inequality is not a problem
say no inequality is not a problem because it’s the outcome of functioning
because it’s the outcome of functioning
because it’s the outcome of functioning market economy and therefore we don’t
market economy and therefore we don’t
market economy and therefore we don’t need more transfers or bigger welfare
need more transfers or bigger welfare
need more transfers or bigger welfare states well I think they’re both wrong
states well I think they’re both wrong
states well I think they’re both wrong because if the key driver is a lack of
because if the key driver is a lack of
because if the key driver is a lack of equality of opportunity you will not
equality of opportunity you will not
equality of opportunity you will not solve that with the bigger welfare
solve that with the bigger welfare
solve that with the bigger welfare states with the higher transfer payments
states with the higher transfer payments
states with the higher transfer payments you create you solve it by creating
you create you solve it by creating
you create you solve it by creating opportunities and giving everyone the
opportunities and giving everyone the
opportunities and giving everyone the same opportunities to access to develop
same opportunities to access to develop
same opportunities to access to develop their own skills and talents to get
their own skills and talents to get
their own skills and talents to get access to the labour market get the
access to the labour market get the
access to the labour market get the goods good job the safe job where they
goods good job the safe job where they
goods good job the safe job where they can develop and where they can take
can develop and where they can take
can develop and where they can take three decisions so the big promise and
three decisions so the big promise and
three decisions so the big promise and coming
coming
coming back to the quote of to howl its key so
back to the quote of to howl its key so
back to the quote of to howl its key so what do people feel people feel the
what do people feel people feel the
what do people feel people feel the social contract is no longer valid and
social contract is no longer valid and
social contract is no longer valid and for much of the Western world our social
for much of the Western world our social
for much of the Western world our social contract has to do with the social
contract has to do with the social
contract has to do with the social market economy so the idea you have a
market economy so the idea you have a
market economy so the idea you have a functioning market economy and at the
functioning market economy and at the
functioning market economy and at the same time you have a social welfare
same time you have a social welfare
same time you have a social welfare state and that promise of a social
state and that promise of a social
state and that promise of a social market economy has been broken that
market economy has been broken that
market economy has been broken that contract is dysfunctional on the one
contract is dysfunctional on the one
contract is dysfunctional on the one hand because we don’t have a functioning
hand because we don’t have a functioning
hand because we don’t have a functioning market economy because people don’t have
market economy because people don’t have
market economy because people don’t have the same opportunities and if you look
the same opportunities and if you look
the same opportunities and if you look at issues like the Paradise Papers where
at issues like the Paradise Papers where
at issues like the Paradise Papers where some companies some individuals
some companies some individuals
some companies some individuals purposefully get advantages and
purposefully get advantages and
purposefully get advantages and basically skirt the rules to take
basically skirt the rules to take
basically skirt the rules to take personal advantage you cannot really
personal advantage you cannot really
personal advantage you cannot really talk about a functioning market economy
talk about a functioning market economy
talk about a functioning market economy you cannot talk about functioning coming
you cannot talk about functioning coming
you cannot talk about functioning coming when some people don’t have the ability
when some people don’t have the ability
when some people don’t have the ability to really compete because they cannot
to really compete because they cannot
to really compete because they cannot use their skills or because they don’t
use their skills or because they don’t
use their skills or because they don’t have the same voice in the labor market
have the same voice in the labor market
have the same voice in the labor market and we don’t have really a functioning
and we don’t have really a functioning
and we don’t have really a functioning social welfare state because it fails to
social welfare state because it fails to
social welfare state because it fails to provide people with those opportunities
provide people with those opportunities
provide people with those opportunities and there is a fundamental
and there is a fundamental
and there is a fundamental misunderstanding that many people feel a
misunderstanding that many people feel a
misunderstanding that many people feel a welfare state is there to compensate the
welfare state is there to compensate the
welfare state is there to compensate the losers from globalization in a
losers from globalization in a
losers from globalization in a functioning market economy and that’s a
functioning market economy and that’s a
functioning market economy and that’s a fundamental misunderstanding the idea of
fundamental misunderstanding the idea of
fundamental misunderstanding the idea of the social market economy that is social
the social market economy that is social
the social market economy that is social welfare state is there to enable to
welfare state is there to enable to
welfare state is there to enable to empower people to make them able to take
empower people to make them able to take
empower people to make them able to take free decisions to live in
free decisions to live in
free decisions to live in self-determined life to be autonomous to
self-determined life to be autonomous to
self-determined life to be autonomous to decide what do I want to do with my life
decide what do I want to do with my life
decide what do I want to do with my life and that of my family and to address
and that of my family and to address
and that of my family and to address that I see the key challenge to create
that I see the key challenge to create
that I see the key challenge to create those equality of opportunity through a
those equality of opportunity through a
those equality of opportunity through a better education system that focuses in
better education system that focuses in
better education system that focuses in early childhood education in particular
early childhood education in particular
early childhood education in particular for families who cannot do the same at
for families who cannot do the same at
for families who cannot do the same at home because both parents have to work
home because both parents have to work
home because both parents have to work or they don’t have the money we need to
or they don’t have the money we need to
or they don’t have the money we need to provide for for the children the same
provide for for the children the same
provide for for the children the same educational standards for for Richard
educational standards for for Richard
educational standards for for Richard kids it has it with family policies in
kids it has it with family policies in
kids it has it with family policies in particular to empower women and other
particular to empower women and other
particular to empower women and other groups in society who don’t have the
groups in society who don’t have the
groups in society who don’t have the same opportunities it’s about a fair
same opportunities it’s about a fair
same opportunities it’s about a fair taxation a fair market economy where
taxation a fair market economy where
taxation a fair market economy where everyone has the same ability in the
everyone has the same ability in the
everyone has the same ability in the same chances to compete and it has to do
same chances to compete and it has to do
same chances to compete and it has to do altum Utley also missed creating a labor
altum Utley also missed creating a labor
altum Utley also missed creating a labor market where people can work
market where people can work
market where people can work and have a future can determine their
and have a future can determine their
and have a future can determine their future and provide for old age so in
future and provide for old age so in
future and provide for old age so in short I think the social market economy
short I think the social market economy
short I think the social market economy is really the answer to the challenges
is really the answer to the challenges
is really the answer to the challenges we have today in terms of social
we have today in terms of social
we have today in terms of social inequality but for that we need to make
inequality but for that we need to make
inequality but for that we need to make it work again and that can only be by
it work again and that can only be by
it work again and that can only be by creating opportunities so that people
creating opportunities so that people
creating opportunities so that people can attend again take choices have
can attend again take choices have
can attend again take choices have choices are free and autonomous does it
choices are free and autonomous does it
choices are free and autonomous does it deliver self-determining life and that’s
deliver self-determining life and that’s
deliver self-determining life and that’s the objective and thereby I thank you
the objective and thereby I thank you
the objective and thereby I thank you very much for your attention thank you
very much for your attention thank you
very much for your attention thank you [Applause]
”
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