November 13, 2024

The Disappearance and Return of Inequality Studies in Economics

1 hour 10 minutes

This is episode three Cited Podcast’s new season, the Use & Abuse of Economic Expertise. This season tells stories of the political and scholarly battles behind the economic ideas that shape our world. For a full list of credits, and for the rest of the episodes, visit the series page.

For much of the 20th century, few economists studied inequality. “Watching the study of inequality was like watching the grass grow,” is the way inequality scholar James K. Galbraith put it to us. Yet, the inequality studies grass is growing today–really, it’s something of a lush jungle. Arguably, the return of inequality studies is biggest change that has happened in economics over the last decade or so. Why did it return? Just as importantly, how could it have possibly disappeared? On this episode, we survey the broad political and intellectual history of inequality studies in economics.

First, economist Branko Milanovic, author of Visions of Inequality: From the French Revolution to the End of the Cold War, introduces us to a few of the reasons why inequality was marginalized, including the mathematization of the economic mainstream. In short, we sidelined the political in political economy. Then, political theorist Michael Thompson, author of The Politics of Inequality: A Political History of the Idea of Economic Inequality in America, introduces us to the work of Frank Knight and other market-friendly economists who provided ideological justification for widening inequality. Finally, inequality scholar Poornima Paidipaty, speaks to us about the return of inequality studies, particularly through the landmark work of Thomas Piketty. Yet, Paidipaty and her co-author Pedro Ramos Pinto highlight some of the limits of Picketty’s vision in their article “Revisiting the “Great Levelling”: The limits of Piketty’s Capital and Ideology for understanding the rise of late 20th century inequality.”