“For the foreseeable future, it seems as if we’ve bought more time in the recovery,” said Rajan. “The good news is largely in the short term, over the medium term serious problems remain.”

One of the problems most vexing Rajan is political populism. Especially during a time of economic plenty.

At 3.6 percent, unemployment is at a decades-low in the U.S., and remains low across much of Europe and Japan.

“Why are people so unhappy? Why put faith in unorthodox leaders?” asked Rajan. “The question that keeps rising – is capitalism under thret? We have so many proposals from the Democratic left for changes in taxation, arguments for universal healthcare, medicare for all is making waves across  the U.S. Why all of this now, in the midst of plenty, when it seems like capitalism is really producing?”

Rajan argues that power and resources are concentrating in the government and in the market at the expense of communities.

Modern free, capitalist and democratic countries are supported by three pillars: The state, the markets and communities.

“Our standard view of capitalism is largely about free and competitive markets, with government included to enforce contracts and property rights,” said Rajan. “What this ignores, this view of capitalism between the markets and the government, is in a sense the tribe and the community, which work directly through the government to make capitalism work.”

Typically, the state provides justice and security – but in modern times, it does more, said Rajan, like offer education and post-market support to those who have fallen out of the economy, such as the unemployed and disabled.

Markets allow for creative productivity and choice, said Rajan. By community, he means proximate community like one’s neighborhood, village or municipality.

“I would argue the proximate community still matters, it’s an important source of your identity and values,” he said. “Community affects how well you do in life. A lot of success is not based on your parents, but depends on the people around you. Communities are also important for political organization – that’s where movements start. “