Domestic Consequences: The Developed Economies Economic inequality rising to pre WW1 levels in the developed world and expected to continue, overall linked to unequal sharing of gains from increase in productivity between labour and capital (T Picketty) The management of the global financial crisis and the euro zone crisis have both contributed further to the increase in inequality in several respective countries and has de facto facilitated a transfer of wealth from the state and the majority of the population to the richest (R Skarstein, 2013 and V Norman 2012) The situation is even worse however because, T Picketty broadly leaves untreated: 1) the offshore economy that has increased to unprecedented historical levels in the last few decades, and 2) the increasing element of south-north net capital flows through offshore accounts (K Rogoff, 2014)
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