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Economics

Economic Inequality and Political Polarization in Established Democracies

Quick fact

In several established democracies, such as the United States, the gap between the rich and the poor has grown, and the distribution of party positions has become more bimodal, with fewer centrist lawmakers. Studies have found that countries with higher inequality tend to have more polarized party systems, though the causality remains debated.

Why this is interesting

Over the past four decades, the rich in many democracies have pulled far ahead, and at the same time, political parties have moved to the extremes. Are these two trends connected, or is it a coincidence?