Wealth inequality has always existed, but the extremes we see today are dramatic. In this episode, we look at what’s driving economic inequality in the U.S. and examine how race and zip code affect prosperity.
Putting Inequality in Context by
Rising income inequality is highlighted as one of the largest challenges facing the United States, affecting civic participation and political representation. Although the wealthy often can and do exert more political influence, this is not always the case. To fix political inequality, it is important to understand exactly how class divisions manifest themselves in political outcomes, and what factors serve to enhance, or depress, inequalities in political voice. Christopher Ellis argues citizens'-and legislators'-views of class politics are driven by lived experience in particular communities. While some experience is formally political, on an informal basis citizens learn a great deal about their position in the broader socioeconomic spectrum and the social norms governing how class intersects with day-to-day life. These factors are important for policymakers, since most legislators do not represent "the public" at large, but specific constituencies. Focusing on U.S. congressional districts as the contextual unit of interest, Ellis argues individuals' political behavior cannot be separated from their environment, and shows how income's role in political processes is affected by the contexts in which citizens and legislators interact. Political inequality exists in the aggregate, but it does not exist everywhere. It is, rather, a function of specific arrangements that depress the political influence of the poor. Identifying and understanding these factors is a crucial step in thinking about what reforms might be especially helpful in enhancing equality of political voice.
Engine of Inequality by
The first book to reveal how the Federal Reserve holds the key to making us more economically equal, written by an author with unparalleled expertise in the real world of financial policy Following the 2008 financial crisis, the Federal Reserve's monetary policy placed much greater focus on stabilizing the market than on helping struggling Americans. As a result, the richest Americans got a lot richer while the middle class shrank and economic and wealth inequality skyrocketed. In Engine of Inequality, Karen Petrou offers pragmatic solutions for creating more inclusive monetary policy and equality-enhancing financial regulation as quickly and painlessly as possible. Karen Petrou is a leading financial-policy analyst and consultant with unrivaled knowledge of what drives the decisions of federal officials and how big banks respond to financial policy in the real world. Instead of proposing legislation that would never pass Congress, the author provides an insider's look at politically plausible, high-impact financial policy fixes that will radically shift the equality balance. Offering an innovative, powerful, and highly practical solution for immediately turning around the enormous nationwide problem of economic inequality, this groundbreaking book: Presents practical ways America can and should tackle economic inequality with fast-acting results Provides revealing examples of exactly how bad economic inequality in America has become no matter how hard we all work Demonstrates that increasing inequality is disastrous for long-term economic growth, political action, and even personal happiness Explains why your bank's interest rates are still only a fraction of what they were even though the rich are getting richer than ever, faster than ever Reveals the dangers of FinTech and BigTech companies taking over banking Shows how Facebook wants to control even the dollars in your wallet Discusses who shares the blame for our economic inequality, including the Fed, regulators, Congress, and even economists Engine of Inequality: The Fed and the Future of Wealth in America should be required reading for leaders, policymakers, regulators, media professionals, and all Americans wanting to ensure that the nation's financial policy will be a force for promoting economic equality.
From Here to Equality by
Racism and discrimination have choked economic opportunity for African Americans at nearly every turn. At several historic moments, the trajectory of racial inequality could have been altered dramatically. Perhaps no moment was more opportune than the early days of Reconstruction, when the U.S. government temporarily implemented a major redistribution of land from former slaveholders to the newly emancipated enslaved. But neither Reconstruction nor the New Deal nor the civil rights struggle led to an economically just and fair nation. Today, systematic inequality persists in the form of housing discrimination, unequal education, police brutality, mass incarceration, employment discrimination, and massive wealth and opportunity gaps. Economic data indicates that for every dollar the average white household holds in wealth the average black household possesses a mere ten cents. In From Here to Equality, William Darity Jr. and A. Kirsten Mullen confront these injustices head-on and make the most comprehensive case to date for economic reparations for U.S. descendants of slavery. After opening the book with a stark assessment of the intergenerational effects of white supremacy on black economic well-being, Darity and Mullen look to both the past and the present to measure the inequalities borne of slavery. Using innovative methods that link monetary values to historical wrongs, they next assess the literal and figurative costs of justice denied in the 155 years since the end of the Civil War. Finally, Darity and Mullen offer a detailed roadmap for an effective reparations program, including a substantial payment to each documented U.S. black descendant of slavery. Taken individually, any one of the three eras of injustice outlined by Darity and Mullen--slavery, Jim Crow, and modern-day discrimination--makes a powerful case for black reparations. Taken collectively, they are impossible to ignore.
What Drives Inequality? by
There is a great deal of coverage on inequality, and the key determinants of recent trends are increasingly well-documented. However, much less is known about the driving forces behind international differences in inequality. The nine contributions collected in this book set out to examine the fundamental question of What Drives Inequality? These drivers may be so diverse and deep-rooted in the cultural, historical, or geographical characteristics of countries that one can hardly expect comprehensive models or clear-cut causal inference. Nevertheless, the research presented in this book unpacks the reasons behind the wide variations in inequality. Looking across country boundaries, chapters featured include in-depth insights into inequality in Europe, India, and the United States. It provides new results on the impact of public goods and services and on the role of demographic, labor market and, most importantly, fiscal policy determinants. It also brings fresh evidence and perspectives on the measurement of inequality, by examining wealth or broader measures of well-being, and provides some insights about potential "deeper drivers" such as individual perceptions, preferences, and beliefs about inequality and redistribution.