RSF Merton Scholar Robert Solow Discusses Inequality with Paul Krugman
Robert Solow, the Russell Sage Foundation’s Robert K. Merton Scholar and Institute Professor Emeritus at MIT, joined New York Times columnist Paul Krugman and moderator Janet Gornick (Director of the Luxembourg Income Study Center and a former RSF Visiting Scholar) at the Foundation for a conversation on Inequality: What Can Be Done?, a new book by British inequality scholar Anthony B. Atkinson. In the book, Atkinson argues that economic inequality has reached unacceptable levels in many countries and lays out an agenda for reducing inequality. His policy proposals span five areas: technology, employment, the sharing of capital, taxation, and social security.
Solow and Krugman examined the desirability, viability, and feasibility of Atkinson’s policy recommendations, including whether his solutions could be achieved in the United States.
Among other topics, Solow and Krugman evaluated a number of proposals outlined by Atkinson in his book. Solow expressed preference for the policies focused not on redistributing income, but rather, on influencing the ways income is distributed by the market in the first place, including policies that provide higher wages, more bargaining power, and other benefits to the increasing number of temporary and contract workers. Krugman also agreed on the need for policies addressing pre-tax income, and further stated support for Atkinson’s proposals for achieving full employment.
On the subject of whether such policies could succeed in the U.S., both Solow and Krugman expressed skepticism for their implementation in the current political climate, which remains hostile to government efforts to redistribute income. Yet, as, Solow noted, “It’s worth discussing these issues on the chance that the political situation will move in a direction where such suggestions have a little more appeal.”