Where you live matters
Lately Globalization brings two trends1.Poor countries continue to catch up to the rich countries but slowly. The only country that transitioned from poor to rich is Singapore. Perhaps Korea & Japan are also amazing transitions.
2.Regional inequality withing rich countries increased.
An example Silicon valley is pulling apart from the rest of America. Companies tend to cluster (Detroit) and when one industry gets in trouble one region suffers. In the past people moved from the declining region to the land of opportunity. Not anymore because social security and government subsidies can make people stay in dying regions.
Divergence is the result of big forces. In
the modern economy scale is increasingly important. The companies with the
biggest hoards of data can train their machines most effectively; the social
network that everyone else is on is most attractive to new users; the stock
exchange with the deepest pool of investors is best for raising capital. These
returns to scale create fewer, superstar firms clustered in fewer, superstar
places. Everywhere else is left behind.
The Economist
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