Leading economists and policymakers consider what economic tools are most effective in
reversing the rise in inequality. Economic inequality is the defining issue of our time. In the
United States the wealth share of the top 1% has risen from 25% in the late 1970s to around
40% today. The percentage of children earning more than their parents has fallen from 90% in
the 1940s to around 50% today. In Combating Inequality leading economists many of them
current or former policymakers bring good news: we have the tools to reverse the rise in
inequality. In their discussions they consider which of these tools are the most effective at
doing so. The contributors express widespread agreement that we need to aim policies at
economic inequality itself deregulation and economic stimulus will not do the job. No longer
does anyone ask in relation to expanded social programs Can we pay for it?” And most believe
that US taxes will have to rise—although they debate whether the progressivity should focus on
the revenue side or the expenditure side through broad-based taxes like the VAT or through a
wealth tax aimed at the very top of the income scale. They also consider the philosophical
aspects of inequality—whether it is bad in itself or because of its consequences the risks and
benefits of more radical interventions to change the nature of production and trade and future
policy directions. Contributors Daron Acemoglu Philippe Aghion Danielle Allen Ben Ansell
David Autor Sheri Berman Marianne Bertrand Olivier Blanchard Lucas Chancel William Darity
Jr. Peter Diamond Christian Dustmann David T. Ellwood Richard Freeman Caroline Freund
Jason Furman Hilary Hoynes Lawrence F. Katz Wojciech Kopczuk N. Gregory Mankiw Nolan
McCarty Dani Rodrik Jesse Rothstein Emmanuel Saez T. M. Scanlon Heidi Shierholz Tharman
Shanmugaratnam Stefanie Stantcheva Michael Stynes Laura D'Andrea Tyson Philippe Van Parijs
Gabriel Zucman
