Stories

A theory of cycles suggests a new golden economic age

Illustration: Rebecca Zisser / Axios

As of now, no one knows how to break the grip of low incomes, blighted towns and popular anger in the U.S. and elsewhere. But a Venezuelan economist named Carlota Perez says that, if history is correct, things only look uniquely tough. In her view, government needs to step in now, trigger serious market demand, and dampen financial excess in order to ignite a new golden economic age.

Why it matters: According to Perez, the last couple of centuries have been cycles of such maladies, each time leading to a decades-long period of broad prosperity. If she is right, the question is: How and when do we get to the golden age part?