The New Wealth Of Nations

The emerging world was poor and illiterate just forty years ago. Today, over 70 percent of the world’s middle class resides in the erstwhile poor countries; world income inequality is down to levels last observed in 1870; and there has been a significant reduction in absolute poverty. What accounts for this rapid development and catch-up? Distinguished economist Surjit S. Bhalla’s The New Wealth Of Nations offers a short answer—the spread of education.

The very large increase in college graduates in the non-Western world, the growing educational achievements of women, and the radical change in gender roles are critical to the understanding of current-day mega-trends. This unprecedented development creates competition globally and lowers employment costs, which has contributed to low and declining world inflation over nearly twenty years.

This book breaks new ground by identifying fallacies in anti-globalization rhetoric—voiced by Brexit and Trump supporters—and points out a major gap in current attempts to measure wealth inequality. Bhalla emphasizes that education is the new wealth, surpassing financial wealth in magnitude and achieving more equitable distribution.

While acknowledging the progress made by the developing world, The New Wealth of Nations also examines the downsides of the explosion of education and technology, and explores options like basic income and negative income tax to foster a new welfare order suitable for the 21st century.