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2018 | Buch

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Inequality

An Entangled Political Economy Perspective

verfasst von: Dr. Mikayla Novak

Verlag: Springer International Publishing

Buchreihe : Palgrave Studies in Classical Liberalism

Enthalten in: Springer Professional "Wirtschaft+Technik" , Springer Professional "Wirtschaft"

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Über dieses Buch

‘This book is a thoroughly researched and well written exploration of one of the most divisive topics in modern democratic discourse. Novak brings careful and clear thinking to a topic too often clouded in emotion and guided by moral intuition. ‘
—Peter Boettke, Professor of Economics and Philosophy, George Mason University, USA

‘Inequality has bred a climate of hostile political discourse reminiscent of the cold war. In this lucid book, Novak explains how we can transcend that hostility by recognizing the deeply entangled character of politics and economics within modern societies.’
—Richard E. Wagner, Hobart R. Harris Professor of Economics, George Mason University, USA

‘Mikayla Novak has provided a bold new intellectual foundation for social policy analysis.’
—Jason Potts, Professor of Economics, RMIT University, Australia

In recent years the degree of income and wealth inequality within developed countries has been raised as a central issue in economic and social policy debates. Numerous figures across diverse ideological affinities have advocated policy measures to significantly alter income and wealth distributions, while the inequality debate has become infused with other subjects such as social justice and identity politics. This book presents an account of economic inequality from a contemporary classical liberal perspective. Inequality is seen as a by-product of entangled relationships within society, bringing to the fore key ideas from complexity, evolutionary and network sciences.

Novak illustrates that inequality is problematic insofar as it generates pro-rich redistribution and constrains progress by the less well off. Economic inequality has important links with issues such as fiscal and regulatory policies, discrimination and social exclusion, and institutional design.
This unique book is important reading for social science academics, policy makers and people interested in exploring the dimensions and solutions to inequality, a critical issue of our time.

Inhaltsverzeichnis

Frontmatter

1. Introduction

Abstract

Inequality has arisen as a focal point for economic, political, and social debates amongst developed countries. Highly skewed income and wealth distributions are attributed to many factors, however, so there is a need for a conceptual framework to interpret the relative importance of those factors and the efficacy of potential public policy responses.

This chapter introduces the reader to the key issues raised by contemporary inequality debates, as well as the key arguments canvassed in subsequent chapters. We briefly highlight the extent of inequality, review statements by key figures in the contemporary inequality debate, and lay out the basis for an “entangled political economy” approach to inequality. The chapter also outlines the structure of the book.

Mikayla Novak

Theoretical Foundations

Frontmatter

2. Entangled Political Economy: A General Introduction

Abstract

Mainstream political economy has incurred numerous critiques, including the charge that it has a limited capacity to comprehend, and respond to, challenges such as inequality. A growing number of scholars especially question the realism of mainstream portrayals of benevolent and omniscient government planners aloofly reordering income and wealth distributions from afar.

This chapter outlines the major features of an alternative framework, known as entangled political economy. Entangled political economy stresses that economic, social, and political actions are generated by human interactions and are participatory in nature. Inspired by developments in complexity science, evolutionary theorising, and network analysis, the entangled political economy approach can be used to describe how entanglements between individuals and groups shape distributional outcomes.

Mikayla Novak

3. Explaining Inequality in an Entangled Political Economy

Abstract

Entangled political economy highlights the existence of knotted, intertwined relationships between economic, social, and political actors. Inequalities of income and wealth culminate from these relationships, thereby assuming a complex and emergent character. Inequality arises from many sources: voluntary exchanges within the market, political activities dispensing fiscal and regulatory advantages, and discriminatory social norms excluding certain people from participation.

This chapter illustrates how entangled political economy serves as a novel platform to study inequality issues, and also sheds light upon the appropriateness of certain determinants of inequality. Inequality is as pervasive as the entanglements which give rise to them. Distributional outcomes arising from, or attributable to, coercive political actions, however, tend to be normatively suspect, warranting additional scrutiny.

Mikayla Novak

Case Studies

Frontmatter

4. Taxation and Expenditure Policies

Abstract

Entangled political economy depicts taxation and government expenditure as an emergent process, formulated by legislators and bureaucrats together with special interests and citizens. Whilst taxing and spending attempts to realise various policy objectives, it is not guaranteed that such activities will ameliorate inequality. Policies may implicitly encourage an upward, pro-rich redistribution, rather than pro-poor redistribution widely deemed as the desirable political objective.

This chapter illustrates how certain expenditure and taxation policies potentially worsen inequality outcomes. Economic inequalities are exacerbated when fiscal policy measures effectively redistribute income and wealth in an upward direction, or constrain economic mobility. Fiscal policy also performs poorly to the extent that political agents impose taxes, and disburse payments, on a discriminatory basis.

Mikayla Novak

5. Regulatory Policies

Abstract

Governments in developed countries routinely regulate economic, social, and political activities to control or influence individual and group conduct. From the standpoint of entangled political economy, regulatory development and enforcement reflects an unending tussle of collaborative and competitive strivings between political and non-political interests. There is little question regulation influences economic patterns, thus affecting the distribution of income and wealth.

This chapter outlines ways in which government regulations potentially exacerbate inequality from an entangled political economy perspective. Inequality is magnified should regulation effectively serve to protect the income and wealth positions of asset holders, and of suppliers in product and factor markets. The quality of regulatory governance also has some bearing upon the redistributive potential of regulation.

Mikayla Novak

6. Social Exclusion

Abstract

Relationships with an entangled political economy are affected by cultural and social habits, norms and practices influencing the extent to which people are prepared to engage one another. Certain governments have adopted regulatory and fiscal policies that perpetuate status distinctions between groups of people, worsening inequality as a result. Policies entrenching the likes of sexism, racism, and xenophobia have restricted opportunities for individuals to voluntarily establish their own mutually beneficial connections with others.

This chapter describes the processes through which discriminatory treatment towards certain groups potentially magnifies unequal distributions of income and wealth. Inequality is exacerbated when animosity towards so-called out-groups, reflected in discriminatory policy treatment, manifests a widespread exclusion from voluntary network interactions of economic value.

Mikayla Novak

Reforms

Frontmatter

7. Economic Constitutionalism and Inequality

Abstract

A commitment to voluntary, mutually beneficial modes of human action implies certain forms of inequality are inadmissible. This includes inequality driven by political processes, entailing advantages to wealthy interests at the expense of others, including the poor. Even if policy-induced inequality cannot be eliminated, the entangled political economy approach indicates that the underlying actions can, and should, be influenced to help reduce the worst excesses of such inequality.

This chapter indicates that better institutional rules are necessary to help suppress inequalities arising from abuses of political power that inhibit equalising market processes. Both fiscal and regulatory policies are ripe for reform in this context. Pro-equality rules to restructure economic policies in an entangled political economy are most suitably inspired by the principles of non-discrimination and decentralisation.

Mikayla Novak

8. A Society of Dignified Equals and Inequality

Abstract

The human tendency to demarcate each other according to group categories has all too frequently metastasised into legally enshrined discrimination. These practices have posed a significant risk to the practical and effective exercise of liberty by all. In addition, formal discrimination has misshapen interpersonal connections, aggravating economic inequality in the process.

This chapter sketches out principles to better align economic and social equalities. Breaking down barriers against economic, social, and political participation is consistent with treating all equally under the law, and according all as deserving of equal treatment given our common humanity. Social relations grounded in greater toleration are also likely to open up viable networking opportunities among disparate persons, helping to reduce inequalities of income and wealth.

Mikayla Novak

9. Conclusion

Abstract

Economic inequality has emerged as a major cultural, economic, political, and social theme of modern times. This phenomenon has merited the involvement of various actors within civil society seeking to understand the nature and consequences of inequality.

Income and wealth inequalities are not only undesirably driven by differential access to political favours, elicited by lobbying and petitioning. They are influenced by social inequalities, generated by differential esteem and respect accorded to people subscribing to certain identities. The classical liberal approach calls for institutional changes discouraging fiscal, and regulatory, privileges and discriminatory social policy. These reforms would assist to uphold the rule of law and promote the development of “liberty-consistent” networks within entangled political economy, enabling us all to live freely and equally.

Mikayla Novak

Backmatter

Titel: Inequality
verfasst von: Dr. Mikayla Novak
Verlag: Springer International Publishing
Electronic ISBN: 978-3-319-89417-1
Print ISBN: 978-3-319-89416-4
DOI: https://doi.org/10.1007/978-3-319-89417-1