One Economic Theory to Explain Everything • ©[bloombergview.com]

What if there were one economic Theory of Everything? One theory to rule them all, encompassing the vast sweep of history beneath its mighty wings?

Well, maybe there is. And maybe the author of it is none other than your friendly neighborhood economics columnist, Paul Krugman.

In a recent post, Krugman showed a graph (originally from economist Branko Milanovic) that he calls “recent history in one chart.” It shows how income (measured by purchasing power parity) has skyrocketed in emerging middle-class countries such as China in the last few decades, while middle-class individuals in rich countries such as the U.S. haven’t done so well

via One Economic Theory to Explain Everything – Bloomberg View.

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