Real median household incomes in the U.S. were basically the same in 1989 as in 2014. But we are also seeing similar challenges in the U.K. in the stagnation of real wages.
Mariana MazzucatoMainstream economic theories popular in the last several decades have tended to downplay the government's role in markets and to increase skepticism about even that more limited role. Austerity, particularly in Europe, has added to the problem. It has not worked, even on its own terms.
Mariana MazzucatoBrexit has shrunk the market opportunities. Exiting trade deals will do the same for the U.S. Those deals must be actively shaped and governed to make growth more inclusive.
Mariana MazzucatoFixing markets isn't enough. We have to actively shape and create them and tilt the playing field in the direction of the growth we want.
Mariana MazzucatoThe globalized nature of production and innovation means that the benefits don't necessarily stay in the country where the investments are made.
Mariana MazzucatoIt's important that public funds be spent in research directions that are pushing market frontiers rather than working in existing areas. This means funding research not only on drugs but also on areas like life-style changes, even if the profit potential is lower for Big Pharma as you cannot sell that change as you can sell a medicine.
Mariana Mazzucato