Ineffective economic structures in industrial nations


The economic structures of industrial nations are failing to close the gap between their economic potential and their actual performance. Protectionism, including agricultural, industrial and other subsidies reduce competition in national and international markets for goods and services. High marginal taxes, currency restrictions, financial market regulations, discriminatory tax rates applied to similar transactions, and excessively steep progressive income tax rates restrict capital flows. Centralized collective bargaining, employment regulation, social security restrictions, and government control of training and education have created rigid labour markets.

Narrower Problems:
Distortionary tax systems
Related UN Sustainable Development Goals:
GOAL 8: Decent Work and Economic GrowthGOAL 12: Responsible Consumption and ProductionGOAL 16: Peace and Justice Strong Institutions
Problem Type:
D: Detailed problems
Date of last update
03.02.2021 – 18:26 CET