Inequality and growth7 min read 23 Oct 2015, 12:44 AM IST
Is inequality indeed rising? And why is it such a concern for the World Economic Forum?
Economists don’t write bestsellers. But when Thomas Piketty published Capital in the Twenty First Century, his treatise on the inherent tendency of rising inequality under capitalism, it instantly became a runaway success. Angus Deaton, for whom inequality—including in India—has been a major focus of research, was given the Nobel Prize for economics last week. The World Economic Forum, which is the pre-eminent club of business and political leaders from the world’s richest countries, and not a “bleeding heart" forum for the “have-nots", continues to cite rising inequality as a major global risk in its annual Global Risk Report. Why all this recent attention to inequality studies? Why the great concern about rising inequality?