Topic 11: Inequality & Economic Policy Flashcards
1
Q
What did Knight say about the determinates of wealth?
A
Based on a complex mixture of inheritance, luck and effort, probably in that order.
2
Q
Policies that redistribute wealth
A
Taxes on weath owndership.
Taxes on the transfer of wealth. (estate)
Progressive income taxation.
3
Q
What arguement about inequality has been made by Blinder & Krugman?
A
That poverty diminishes human capital.
Transfering resources to the poor could increase growth.
4
Q
What is Piketty’s major policy reccomendation?
A
A global progressive tax on wealth. Or at least europe.
1% on fortunes above 1mil euro
2% above 5 mil euros.
Annual tax.
This is a natural solution to the dynamics of inequality he uncovered.
