Bocconi University: Alberto Alesina

Harvard University Dept: A classic 1994 paper by Alberto Alesina of Harvard University and Roberto Perotti of Bocconi University studied 71 countries between 1960 and 1985 and found that higher levels of income inequality were associated with increased social instability. Their explanation was that unrest often erupts when a wealthy middle class is weakened as recently reported by the Economist magazine, according to The Star. What is the social impact of society with these kinds of economic class gaps? What lesson is there for the Harper government and anger at austerity is likely to be just one component of public dissatisfaction. Inequality is also an engine of protest. Monetary policy implemented with no understanding of the social cost of austerity is just short-sighted policy and does not serve the best interest of any country. Look at poverty levels in the U.S. or riots in the streets of Athens. By one estimate, 58 per cent of the real economic growth in America of the past 30 years was captured by the top 1 per cent of earners. (www.immigrantscanada.com). As reported in the news.