Policy Lab: Inequality Crisis in the US: Causes, Consequences and Policy Options

(1 Credit Hour) · Undergraduate

Most economists continue to believe that a certain level of inequality is the price of doing business in a market economy. They presume that the clever entrepreneur should be rewarded for their ingenuity and ability to create value. Today, however, the world is seeing unprecedented levels of inequality and concentrations of wealth that are distorting markets, undermining democratic institutions, polarizing citizens, and driving increasing unemployment, homelessness and deaths of despair. Such concentrations of wealth have not been seen since the eve of the Great Depression. Suddenly, political leaders and economists are worried. Why? This course will try to answer the following questions: 1) What were the factors that have created the accelerating growth of inequality both domestically and globally?; 2) What are its most significant manifestations and distributional impacts?; 3) And what policy choices might address the challenges of growing inequality both at home and abroad? Our focus will be on the growth and impacts of extreme wealth concentration and our approach will be interdisciplinary drawing on economics, history, political science and sociological perspectives. We will challenge ourselves to reflect upon the moral and ethical implications and potential consequences of policy choices. Our central question will be how do we achieve the “Good Society”? What are alternative policies and perspectives on the relationship between state and markets that might best serve the common good?