It would cost less to offer guaranteed paid work to unemployed Americans than to finance a social safety net, but there’s really no movement on either side of the aisle in Washington to aid the long-time unemployed, those left behind by the 2008 financial collapse and the growth of robotics. The problem has just been permitted to percolate.

In a Financial Times piece, Martin Wolf looks at two new titles about the haves and have-nots, Inequality: What Can be Done? by Anthony Atkinson and The Globalization of Inequality by François Bourguignon. Interesting that the acceleration of inequality is most marked in the U.S. and U.K. and has not been shared by all other industrialized nations. France, in fact, has seen disparity decrease during the same timeframe. An excerpt: 

Both authors agree that something should be done about inequality. Atkinson provides a number of arguments for concern over rising inequality within rich countries. Some argue, for example, that only equality of opportunity matters. To this he responds that successful personal outcomes are often merely a matter of luck, that the structure of rewards is often grossly unfair and that, with sufficient inequality of outcome, equality of opportunity must be mirage.

Beyond this, argues Atkinson, unequal societies do not function well. The need to protect personal security or to incarcerate ever more people is likely to become a drag on economic performance and inimical to civilised life. If inequality becomes extreme, many will be unable to participate fully in their society. In any case, argues Atkinson, a pound in the hands of someone living on £10,000 a year must be worth more than it is to someone living on £1m. This does not justify complete equality, since the attempt to achieve it will impose costs. But it does mean that high inequality needs to be justified.

Atkinson goes far further, offering a programme of radical reform for the UK. It is not merely radical, but precise and (to the extent such a programme can be) costed. It starts from the argument that rising inequality “is not solely the product of forces outside our control. There are steps that can be taken by governments, acting individually or collectively, by firms, by trade union and consumer organisations, and by us as individuals to reduce the present levels of inequality.”What about policy? At the global level, both authors recommend improved and more generous aid. Bourguignon adds that properly managed trade has much to offer developing countries. Within countries, both authors call for higher taxes on wealth and incomes, and for better regulation, particularly of finance. Also important, they agree, will be policies directly addressed at improving educational outcomes for the disadvantaged.

Thus policy makers should develop a national pay policy, including a statutory minimum wage set at the “living wage,” and should also offer guaranteed public employment at that rate.•