Weakened global trade: What consequences for income distribution?

The global skewing of demand towards services, especially in China, is leading to a significant slowdown in global trade. This means that to a far greater extent than in the past, growth will have to come from domestic demand, and especially household demand since corporate investment can be weakened by weak export growth. A skewing of income distribution at the expense of employees, which weakens household demand then becomes very negative ( such a skewing can be seen at present in the United States, Japan and Spain), especially in countries whose economies are very open (euro-zone countries, United Kingdom).