Answer to Question #137830 in Macroeconomics for Shai

Question

is international dualism and domestic dualism are merely different manifestations in the same phenomenon?

Answer 1

If by dualism we mean unequal divisions of wealth and economic power, it’s a crude concept because wealth follows something roughly like a continuum or power-law distribution.

However having accepted this concept of two categories, the have’s and the have not’s, it’s evident that (1) the rich use their capital to get richer, while the poor lack that resource, and (2) the global movement of capital means that this process becomes international as well as domestic (within a specific nation). Meanwhile the “middles” get emptied out, contradicting a smooth distribution and creating a rough dualism.