New Social Contract
In this report, the McKinsey Global Institute takes an in-depth look at the changes in 22 advanced economies in Asia, Europe, and North America, during the first two decades of the 21st century. Its findings points to the need of an evolution in the “social contract”.
“We are living in a new era of rising discontent, mistrust of institutions, and an economy that does not work well for everyone. This remains true despite significant progress in some economic indicators, including employment rates and GDP growth, along with technological advancements and improvements in education and longevity”.
The traditional economic variables need to be complemented by other indicators with a broader scope: “The relatively positive perspective on the state of the economy, based on GDP and job growth indicators, needs to be complemented with a fuller assessment of the economic outcomes for individuals as workers, consumers, and savers/pensioners”.