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The article reflects on the paper "Workers and the World Economy," by Ethan B. Kapstein, which appeared in the May 1996 issue. The main obstacle to economic growth is tax codes, which are not only means of raising revenue but also prices. Regulations and labor restrictions have become burdensome to the economy in Europe, as well as in the U.S. Growing income inequality is more of a social phenomenon than an economic one.

The article comments on the paper "Workers and the World Economy," by Ethan B. Kapstein, which appeared in the May 1996 issue. Kapstein implicitly equates workers of the world with workers of only the industrial world. He seems to believe that deficit spending and monetary stimulus would generate growth and reduce unemployment. Reform in Europe requires flexible labor markets, fewer privileges for trade unions and changes in the social welfare system.