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In my latest Letter from the President, I look at the rise of populism in the developed world. The emergence of the so-called “new normal”, marked by weak GDP growth and stagnant incomes, has unfolded as a troubling, persistently enduring economic condition, rather than a cyclical phenomenon. I argue that governments must find consensus for pro-growth policies to break the economic malaise, embracing low tax rates, broad tax reform, stimulative spending, and deregulation, and avoid the impulse for excessive social spending and protectionism. Failure risks political pressure for even more radical policy solutions.
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