The Great Polarization: How Ideas, Power, and Policies Drive Inequality (Initiative for Policy Dialogue at Columbia: Challenges in Development and Globalization)

Inequality of income and wealth has skyrocketed since the 1970s. As the super-rich have grasped the vast majority of the gains from economic growth, labor's share of income has declined. The middle class has stagnated, and those at the bottom have become even worse off. Persistent structural discrimination on the basis of race and gender exacerbates these economic disparities. The Great Polarization brings together scholars from disparate fields to examine the causes and consequences of this dramatic rise in inequality. Contributors demonstrate that institutions, norms, policy, and political power—not the "natural" operation of the market—determine the distribution of wealth and income. The book underscores the role of ideas and ideologies, showing how neoclassical economics and related beliefs have functioned in public debates to justify inequality. Together, these essays bear out an inescapable conclusion: inequality is a choice. The rules of the economy have been rewritten to favor those at the top, entrenching the imbalances of power that widen the gap between the very rich and everyone else. Contributors reconsider the data on inequality, examine the policies that have led to this predicament, and outline potential ways forward. Using both theoretical and empirical analysis and drawing on the knowledge of experts in policy, political economy, economics, and other disciplines, The Great Polarization offers a kaleidoscopic view of the processes that have shaped today's stark hierarchies. "Inequality in income and wealth has increased dramatically in the United States and many other advanced countries since the mid-1970s. It permeates all aspects of our lives, and is front and center in public and academic debates. Our societies have become more polarized perhaps than any time since the Gilded Age a hundred years ago: the super-rich co-exist with a well-to-do professional class, and the rest struggle in the neverland of big box stores and the gig economy. In The Great Polarization: Economics, Institutions and Policies in the Age of Inequality , the contributors comment on the claim that the rise in inequality in the US in all its facets has been facilitated and exacerbated by policy choices, rather than the 'natural' progression of the underlying forces of economics. Policy choices, in turn, are the outcome of political processes that are heavily influenced by the differential power that groups are able to exert. Opening with an essay by Joseph Stiglitz, he explicates that only this volume's central thesis is broadly consistent with the stylized facts of the increase in inequality in the US, implying that a return of truly progressive policy making, enabled by sufficient political power to enact meaningful reforms in a number of arenas, provides a feasible way forward. All subsequent chapters then expand on specific themes and issues raised in Professor Stiglitz's opening chapter. Section II covers the measurement of inequality and its contextualization vis-à-vis the central thesis; Section III surveys selected causes of inequality as they arise from distinct policy choices in specific areas of the economy within society; and Section IV embeds these developments in a broader political context, and outlines an agenda forward to fight for"-- Provided by publisher Inequality of income and wealth has skyrocketed since the 1970s. Asthe super-rich have grasped the vast majority of the gains fromeconomic growth, labor's share of income has declined. The middleclass has stagnated, and those at the bottom have become even worseoff. Persistent structural discrimination on the basis of race andgender exacerbates these economic disparities. The GreatPolarization brings together scholars from disparate fields toexamine the causes and consequences of this dramatic rise ininequality. Contributors demonstrate that institutions, norms,policy, and political power-not the "natural" operation of themarket-determine the distribution of wealth and income. The bookunderscores the role of ideas and ideologies, showing howneoclassical economics and related beliefs have functioned inpublic debates to justify inequality. Together, these essays bearout an inescapable conclusion: inequality is a choice. The rules ofthe economy have been rewritten to favor those at the top,entrenching the imbalances of power that widen the gap between thevery rich and everyone else. Contributors reconsider the data oninequality, examine the policies that have led to this predicament,and outline potential ways forward. Using both theoretical andempirical analysis and drawing on the knowledge of experts inpolicy, political economy, economics, and other disciplines,The Great Polarization offers a kaleidoscopic view of theprocesses that have shaped today's stark hierarchies The Great Polarization brings together contributors from disparate perspectives to examine the causes and consequences of skyrocketing inequality. Contributors reconsider the data on inequality, examine the policies that have led to this predicament, and outline potential ways forward.