Inequality as side effect, grow the pie

I was discussing with friends over the last few weeks about inequality. I have leftist and rightist friends (I myself think of myself as apolitical and syncretic, more simultaneously left/right over many items) but the description of it matters.

The latest work by Piketty - I’ve read the slides not the whole book - outlines much of the data. Many of the thoughtful thinkers look at inequality as a “side effect” or “bug” (feature?) of “grow the pie” wealth creating mechanisms.

This brings up interesting metaphors. If you are critical of growth, you evoke cancers and tumours as the damage out of control growth can bring. But if you think inequality is unintentional - then phrases like side effects seem better. 

Side effects are useful to think about as it suggests you don’t want to damage the primary driver - wealth creation. But, you do want to mitigate the side effects where possible.

Two items on this topic, I’ve recently read. One is a Paul Graham essay, which clearly argues for the wealth creation aspect of capitalism and another the soon to be launched book of Alex Edmans, Grow The Pie, which is more nuanced but does also primarily argue that growing the pie, is win-win. Particularly important for left thinkers to understand this view.

Paul Graham Inequality Essay

Alex Edmans: Grow the Pie book.

Piketty Slides (2019): Brahmin left vs Merchant Right

My Blog on looking at longitudinal inequality, not as bad as I might have thought but still down.