The Next Challenge

During the 1990s, Paul Romer, a Stanford economist, emerged as one of the world’s leading theorists on economic growth. Recently, though, Romer has changed his focus, and he told me that the country, too, is entering a new phase. For most of the 20th century, he explained, economists focused on stability — that is, understanding and controlling inflation and depressions. Then, toward the end of the century, growth became the central obsession. Now, Romer said, we are embarking on the next great challenge in American economics: mitigating inequality.

Matt Bai, a contributing writer, covers national politics for the NY Times magazine. His book, “The Argument: Billionaires, Bloggers and the Battle to Remake Democratic Politics,” will be published in August.