Full Description
From the United States to the United Kingdom and from China to India, growing inequality has led to social discontent and the emergence of populist parties, also contributing to economic crises. We urgently need a better understanding of the roots and costs of these income gaps. The Costs of Inequality draws on the experience of Latin America, one of the most unequal regions of the world, to demonstrate how inequality has hampered economic growth, contributed to a lack of good jobs, weakened democracy, and led to social divisions and mistrust.
In turn, low growth, exclusionary politics, violence and social mistrust have reinforced inequality, generating various vicious circles. Latin America thus provides a disturbing image of what the future may hold in other countries if we do not act quickly. It also provides some useful lessons on how to fight income concentration and build more equitable societies.
Contents
1. Introduction: Lessons from the Land of Inequality
1.1. Inequality is growing in developed countries... and it is even higher in Latin America
1.2. Exploring inequality through case studies
1.3. The book's argument: the economic, political and social costs of inequality
1.4. How do we move from here? Some Latin American lessons
1.5. The rest of the book
2. Latin America: Always the Most Unequal Region?
2.1. The most unequal region in the world?
2.2. It is about the rich, stupid!
2.3. Always Unequal?
2.4. No longer an exception: growing inequality in other parts of the world
3. The Economic Costs of Inequality: Poor Education, Lack of Innovation and Economic Crises
3.1. A historical excursion
3.2. The problem of education today
3.3. Inequality limits the opportunities to create more dynamic economies
3.4. The difficulties to tax the rich
3.5. Income inequality and financial crises
3.6. From the economy back to inequality
3.7. From Latin America to the rest of the world
4. The Political Costs of Inequality: Weak Democracies and Populist Solutions
4.1. The uncomfortable coexistence of democracy and elite power
4.2. The first wave of populism as a response to the democratic deficit
4.3. Coming to the present: the limits of democracy and a new populist response
4.4. Authoritarian breaks as extreme elite responses
4.5. From politics back to inequality
4.6. From Latin America to the rest of the world
5. The Social Costs of Inequality: Violence, Social Mistrust and its Consequences
5.1. The most unequal and most violent region at the same time
5.2. Inequality contributes to mistrust in neighbours and institutions
5.3. Inequality, discrimination and racism
5.4. From social problems back to inequality: the difficulties to create redistributive coalitions
5.5. From Latin America to the rest of the world: some warning signs
6. Changing Courses
6.1. Latin America as a warning to the rest of the world
6.2. The unexpected reduction of inequality in Latin America during the 2000s
6.3. What can Latin America do to reverse courses?
6.4. An agenda for equity in the rest of the world
6.5. Conclusion: hope or disappear?
