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Wealth Inequality and Power Imbalances: Shedding Some Heterodox Light on a Neglected Topic

Rehm, Miriam and Schnetzer, Matthias (2016) Wealth Inequality and Power Imbalances: Shedding Some Heterodox Light on a Neglected Topic. Der öffentliche Sektor - The Public Sector, 42 (2). pp. 53-58. ISSN 2412-3862

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Abstract

This paper argues that the cumulative causation processes between wealth and power risk leading to an escalation of wealth inequality. We confirm with new survey data for the Eurozone Piketty's conclusions that wealth is highly concentrated and that this inequality is perpetuated through dynastic wealth. This leads to an ever-concentrating ability to shape economic and political institutions. While neoclassical economics has a blind spot where power is concerned, we discuss how heterodox approaches have attempted to conceptualize this structural power which influences the framework of economic activity. Finally, we discuss three concrete channels through which the unequal distribution of private assets may affect power relations and economic activity.

Item Type: Article
Additional Information: An extended version of this article was originally published as: Rehm, Miriam and Schnetzer, Matthias (2015): Property and power: lessons from Piketty and new insights from the HFCS, European Journal of Economics and Economic Policies: Intervention, Vol.12 No.2, pp.204-219. Für Laudatio zur Verleihung des Egon-Matzner-Preises für Sozioökonomie 2016 an Miriam Rehm und Matthias Schnetzer siehe Der öffentliche Sektor Jg. 42 (2016), H. 2, S. 51-52.
Keywords: wealth inequality / power / Piketty / Household Finance and Consumption Survey
Classification Codes: JEL D31, E12, P16
Divisions: Departments > Volkswirtschaft > Makroökonomie
Version of the Document: Published
Variance from Published Version: None
Depositing User: Elena Simukovic
Date Deposited: 19 Dec 2016 11:47
Last Modified: 19 Dec 2016 14:09
Related URLs:
URI: http://epub.wu.ac.at/id/eprint/5348

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