search

Web Search powered by YAHOO! SEARCH
Dec 5, 3:00 PM EST

Bank of England Governor Mark Carney has warned that government and industry must do their part to spur growth and ensure that prosperity is more equally distributed to counter a rising tide of insecurity and anxiety



Multimedia
A district summary of the Beige Book
Measuring economic stress by county nationwide
Mall malaise: shoppers browse, but don't buy
Unemployment by the numbers
Family struggles with father's unemployment
Saying an affordable goodbye
Hard times hit small car dealer
Latest Economic News
German industrial production rose more weakly than expected in October following a significant decline the previous month

Australia's economy has contracted in the September quarter for the first time since early 2011

The heir to the Samsung empire and other tycoons have taken a public drubbing by lawmakers over deep-rooted ties between politics and business that helped drive South Korea's economic ascent but are central to its political crisis

Brazil's government is proposing that the minimum retirement age be set at 65 as part of an overhaul to a pension system many say is unsustainable

Bank of England Governor Mark Carney has warned that government and industry must do their part to spur growth and ensure that prosperity is more equally distributed to counter a rising tide of insecurity and anxiety

Italy is facing political upheaval after Premier Matteo Renzi said he's resigning after a crushing defeat in a nationwide referendum

U.S. services firms expanded last month at the fastest pace in more than a year

Lufthansa and General Electric will invest some 250 million euros ($270 million) in Poland to build a plant that will service aircraft engines starting in 2018

Business economists still expect U.S. economic growth to pick up next year _ but they see a slowdown in hiring

The U.S. jobs report on Friday made one thing clear: President-elect Donald Trump will inherit the same two-track U.S. economy that bedeviled his predecessor

Interactives
Greece's Debt Threatens to Spread
State budget
gaps map
Auto industry problems trickle down, punish Tennessee county
Women give old Derby hats a makeover in tough economy
S.C. town deals with highest unemployment in South
How mortgages were bundled and sold as securities
Tracking the $700 billion financial bailout
Tracking the year's job losses
State-by-state foreclosures since 2007
Credit crisis explained
Presidents and their economic legacies
Lexicon of the financial crisis
Americans' addiction to debt

LONDON (AP) -- Bank of England Governor Mark Carney has warned that governments and industry must do their part to spur growth and ensure that prosperity is more equally distributed to counter a rising tide of insecurity and anxiety.

In a powerful speech Monday in Liverpool, Carney compared the dislocations that followed the financial crisis of 2008 to those caused by the Industrial Revolution when Karl Marx was "warning of a specter haunting Europe."

Over the past 10 years, inflation-adjusted earnings in Britain have grown at slowest rate since the mid-19th century, he said.

"We meet today in the first lost decade since the 1860s," Carney said. "In the wake of a global financial crisis. And in the midst of a technological revolution that is once again changing the nature of work."

Governments around the world have relied on interest rates and other forms of monetary policy to address the impact of the 2008 financial crisis, making central banks "the only game in town," Carney said. But it is now time for a "balanced mix of monetary, fiscal and structural policies" to promote inclusive growth.

The remarks are likely to raise eyebrows in the British government, where some have criticized Carney for what they deemed to be meddling outside of his remit. Lawmakers who favored Britain's exit from the European Union took particular issue with Carney's dire predictions about the economic implications of Britain leaving the 28-nation bloc - and British voters in June chose to do that anyway.

Carney said governments must face the fact that free trade and technological developments are leaving some people behind, even as they increase global prosperity. This means that developed countries must redistribute some of the gains produced by these developments and retrain workers to succeed in the new economy.

Corporations operating across borders must also recognize that they have responsibilities in their local communities, including paying their taxes, he said.

"The combination of open markets and technology means that returns in a globalized world amplifies the rewards of the superstar and the lucky," he said. "Now may be the time of the famous or fortunate, but what of the frustrated and frightened?"

© 2016 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. Learn more about our Privacy Policy and Terms of Use.

advertisement