Inequality Represents A Wasted Opportunity For Poverty Reduction
This is the most frequent response I get when I tell other economists that I work on inequality. The economist Deidre McCloskey put the view bluntly in an article titled “Equality lacks relevance if the poor are growing richer.” But this view shows a remarkable disregard for one of the most fundamental principles of economics: that of optimization. Economists go to great lengths to optimize GDP growth and efficiency. But when it comes to poverty, any positive change is taken as good enough. If poverty is falling by any amount, or the poor are growing richer by any amount, then apparently we (and more to the point, the poor) should stop worrying. If we really care about poverty, this won’t do.