The reason Gatsby Curve was devised by economists to show how social immobility rises with increasing inequality of wealth. That is, as inequality increases it becomes consolidated, more rigid and harder to change; it is increasingly challenging for a new Great Gatsby to take place. Politically, this threatens the way forward for democracy, considering that it leads several situation wherein the wealthy manipulate the system to their unique advantage and establish what is, in effect, an oligarchy. Even though this trend seems to have been seen by professional economists for a lot of years, it truly is recently that politicians have fallen into prominence in Britain and the us who understand the danger, and to help try to reverse numerous before the democratic system loses the power of self-healing.
In this scenario, the role of the billionaire businessman, Donald Trump, is seen as the bid of the already wealthy to gain ever greater control of government. Try to is to lift the restraints on business and continue the trend of gathering all newly generated wealth into very own hands. To succeed in a democracy, the wealthy must gain the support of associated with ordinary people whose interests they won't serve. They gather votes by creating alarm over immigration, exaggerating the threat of international terrorism and guaranteeing the right to carry gun.
Extreme right-wing politicians like Donald Trump seek to keep the current trend on the Great Gatsby Curve towards increased inequality and greater intergenerational immobility. However, within both the UK and the country politicians are located who are aware of the danger and will strive to reverse movement. These personalities, on the left of
politics, are supported by large numbers of people, especially younger people, but challenging less liked the established political figures in their parties who believe that the radical policies will make them unelectable. Both Jeremy Corbyn in the UK, and Bernie Sanders in the USA, have struck a chord with the masses and seem determined to prove their more orthodox colleagues inadequate.
The coming Presidential election in united states is likely to be as vital for the preservation of democracy as was revenue World Warfare. There is growing resentment at ever rising company dividends and executive salaries while average wages stagnate and governments refuse to introduce a living wage. With greater numbers sinking into poverty, more and more young people are coming over for realise that the opportunity become a new Great Gatsby is denied them. The key to resolving the problem is to take the appropriate steps to reduce inequality by increasing taxes on the rich, preventing companies from avoiding taxation, providing free education, guaranteeing a living wage and providing comparable benefits for that sick and unemployed. By working towards these goals, Bernie Sanders can return America to the former leading position associated with world economy and restore to a coming generation the American Dream.