Report of the Commission on Inclusive Prosperity | Center for American Progress

This is the economic philosophy behind President Obama's State of the Union speech. - gwc
Report of the Commission on Inclusive Prosperity | Center for American Progress
by Lawrence Summers and Ed Balls
"History tells us that societies succeed when the fruits of growth are broadly shared. Indeed, no society has ever succeeded without a large, prospering middle class that embraced the idea of progress. Today, the ability of free-market democracies to deliver widely shared increases in prosperity is in question as never before.
The primary challenge democracies face is neither military nor philosophical. 'Rather, for the first time since the Great Depression, many industrial democracies are failing to raise living standards and provide opportunities for social mobility to a large share of their people. Some of those countries that have produced economic growth have done so in a manner that has left most of their citizens no better off.
This is an economic problem that threatens to become a problem for the political systems of these nations—and for the idea of democracy itself. The citizens of industrial democracies continue to value their freedom and their opportunity to participate in the task of self-government. But they also count on their political systems to create circumstances in which they can use their talents and their labor to provide a decent standard of life for themselves and their families.
When democratic governments and market systems cannot deliver such prosperity to their citizens, the result is political alienation, a loss of social trust, and increasing conflict across the lines of race, class, and ethnicity. Inclusive prosperity nurtures tolerance, harmony, social generosity, optimism, and international cooperation. And these are essential for democracy itself."
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