Combating Inequality: Rethinking Government's Role

Contents
Introduction: We Have the Tools to Reverse the Rise in Inequality
A Growing Consensus
Which Policies?
Philosophy and Politics
Urgency, Ambition, and Evidence
The Path Ahead
Acknowledgments
Reference
I. The Landscape
1. Ten Facts about Inequality in Advanced Economies
Introduction
Inequality Data Remain Scarce in the Digital Age
Income Inequality Has Risen at Different Speeds since the 1980s, after a Historical Decline
Rich Countries Have Become Richer but Their Governments Have Become Poorer
Capital Is Back, for a Few
No Sign a of New Normal after the Great Recession
Global Inequality Is Now More about Class Than about Nationality
Higher Inequality Is Associated with Lower Mobility Rates
Gender and Racial Income Inequalities Were Reduced in the Twentieth Century but Remain High
Equal Access to Education, Health, and High-Paying Jobs Is Key to Lifting Pretax Incomes at the Bottom of the Distribution
Tax Progressivity Has Shaped the Dynamics of Inequality at the Top
Concluding Remarks: While Designing Policy Responses to Current Inequality Trends, Future Inequality Drivers Must Also Be Factored In
Notes
References
2. Discussion of the Landscape
Too Little Tax Revenue and Too Little Investment
Equity, Efficiency, and Public Good Expenditures
Climate Change and Social Security as Future Drivers of Inequality
Acknowledgment
References
II. Ethical and Philosophical Dimensions
3. Time for New Philosophical Foundations for Economic Theory?
References
4. What Kinds of Inequality Should Economists Address?
The Criterion: Strict versus Lax
The Scale: Domestic versus Global
The Distribuendum: Snapshot Outcome versus Lifetime Opportunity
Policy Implications?
Notes
References
5. Why Does Inequality Matter?
Notes
References
III. Political Dimensions
6. Wealth Inequality and Politics
References
7. The Political Conditions Necessary for Addressing Inequality
Conclusion
Notes
References
8. The Political Obstacles to Tackling Economic Inequality in the United States
Notes
References
IV. The Distribution of Human Capital
9. A Modern Safety Net
A Child Allowance
In-Work Supports
Protection against Job Loss
A Safety Net for Those Who Don’t Work
Strengthening Worker Bargaining Power
Conclusion
Notes
References
10. Education’s Untapped Potential
Why Education Still Has Significant Potential as a Leveler
How Public Schools Can Underpin High-Performing Systems
Rethinking Higher Education
Lifelong Learning: Beyond the Mantra
References
V. Policies toward Trade, Outsourcing, and Foreign Investment
11. Why Was the “China Shock” So Shocking–and What Does This Mean for Policy?
Context: Declining Labor Market Fluidity
Reversal of Fortune: The Geography of the China Shock
Some Nonshocking Conclusions
Notes
References
12. Trade, Labor Markets, and the China Shock: What Can Be Learned from the German Experience?
Introduction
Trade with China and the German Experience
What Makes Germany Different?
Discussion and Conclusions
Notes
References
13. Combating Inequality: Rethinking Policies to Reduce Inequality in Advanced Economies
Rapidly Rising Trade Disrupted the Global Economy
Preparation for Work and Policies to Support Workers
References
VI. The (Re)distribution of Financial Capital
14. How to Increase Taxes on the Rich (If You Must)
Reference
15. Would a Wealth Tax Help Combat Inequality?
The Facts on Wealth Inequality, Income Inequality, and Tax Progressivity
Wealth and Political Influence
Will Wealth Taxes Work?
Issues of Political Strategy
Conclusion
Notes
References
16. Should We Tax Wealth?
Wealth Concentration
Tax Revenue Potential
Tax Progressivity
Curbing Wealth Concentration
Other Economic Effects
Notes
References
VII. Policies That Affect the Rate and Direction of Technological Change
17. Could We and Should We Reverse (Excessive) Automation?
References
18. Innovation and Inequality
Measuring Inequality and Innovation
Three Striking Facts
Lobbying Is a Quite Different Source of Income Inequality between those at the Top and the Rest of Society
Should We Worry about the Rich?
Conclusion
Note
References
19. Technological Change, Income Inequality, and Good Jobs
Introduction
Policies to Affect the Rate and Direction of Technological Progress
Policies to Develop Worker Skills
Notes
References
VIII. Labor Market Policies, Institutions, and Social Norms
20. Gender Inequality
What Stands in the Way of Further Progress?
References
21. Ownership Cures for Inequality
Strengthening the Voice of Labor at Work
Increasing Worker Ownership of Capital
Notes
References
IX. Labor Market Tools
22. Guaranteeing Employment for All
References
23. Making Work Work
Making Work Pay
Turning “Bad Jobs” into “Good Jobs”
The Broken Lower-Skill Labor Market
Notes
References
24. The Importance of Enforcement in Designing Effective Labor Market Tools
References
X. Social Safety Net
25. Enhancing Micro and Macro Resilience by Building on the Improvements in the Social Safety Net
Notes
References
26. The Social Safety Net for Families with Children: What Is Working and How to Do More
The Social Safety Net for Families with Children: Current Policies and Recent Changes
Policies to Reduce Child Poverty
The Social Safety Net as an Investment
Notes
References
XI. Progressive Taxation
27. Reflections on Taxation in Support of Redistributive Policies
Taxation Elsewhere
Fixes to Existing US Taxes
Conclusion
Notes
References
28. Why Do We Not Support More Redistribution?: New Explanations from Economics Research
Rising Inequality but Stagnating Support for Redistribution
A New, Innovative Research Tool
Findings
What Can Be Done? The Role of Economists
References
29. Can a Wealth Tax Work?
Note
References
Contributors
Index