Political Economy
September 18, 2023
Lecture 5: Inequality and Redistribution
Capital – Thomas Piketty
Ricardo: Principle of Scarcity
- Certain prices might rise ot an extremly high level over the time and cause destabilization
of the whole society.
- Principle of Scarcity is very important in 21st century for understanding global
distribution of wealth.
Marx: principle of Infinite Accumulation
Lecture
Origins of Inequality
- Equality was not widely used in politics before enlightment.
- Levellers – critics and social movements advocating republics during the English Civil
War, goal – abolish feudalism and introduce peasant socialism.
- Early indigenus American critiques of European society in terms of freedom, community,
mutual aid.
- Sagard’s claim: advocating a “leveling equality” among Europeans similar to the Wendat.
Adam Smith on Inequality
- Wherever there is great property, there is great inequality.
- Through history, ex., freedom and democracy come or go, but material wealth has
steadily increased.
- Great inequalities are morally deleterious for the very wealthy
o Praises the effects of greter wealth and freedom on workers and the necessity of
compeition on merchants and manufacturers
- Unequal wealth has contradictory effects on the poor
Marx on Inequality
- Greater inequalities of power and wealth are usually connected.
- Differentials in wealth distribution are often the result of class struggle, which the state is
part of. As a general rule, when capitalism win inequality increases and when workers
win it dicreases.
Neo-Classical Economists on Inequality
- Markets enable mutual advantageous exchange and efficient allocation of resources.
- Production of greatest good for the greatest number
What is inequality?
September 18, 2023
Lecture 5: Inequality and Redistribution
Capital – Thomas Piketty
Ricardo: Principle of Scarcity
- Certain prices might rise ot an extremly high level over the time and cause destabilization
of the whole society.
- Principle of Scarcity is very important in 21st century for understanding global
distribution of wealth.
Marx: principle of Infinite Accumulation
Lecture
Origins of Inequality
- Equality was not widely used in politics before enlightment.
- Levellers – critics and social movements advocating republics during the English Civil
War, goal – abolish feudalism and introduce peasant socialism.
- Early indigenus American critiques of European society in terms of freedom, community,
mutual aid.
- Sagard’s claim: advocating a “leveling equality” among Europeans similar to the Wendat.
Adam Smith on Inequality
- Wherever there is great property, there is great inequality.
- Through history, ex., freedom and democracy come or go, but material wealth has
steadily increased.
- Great inequalities are morally deleterious for the very wealthy
o Praises the effects of greter wealth and freedom on workers and the necessity of
compeition on merchants and manufacturers
- Unequal wealth has contradictory effects on the poor
Marx on Inequality
- Greater inequalities of power and wealth are usually connected.
- Differentials in wealth distribution are often the result of class struggle, which the state is
part of. As a general rule, when capitalism win inequality increases and when workers
win it dicreases.
Neo-Classical Economists on Inequality
- Markets enable mutual advantageous exchange and efficient allocation of resources.
- Production of greatest good for the greatest number
What is inequality?
