And here is the launch explanation of the analytical perspective that the brand-new group Economists for Inclusive Prosperity hopes to take. It is good. Perhaps we at Equitable Growth should steal it?: Suresh Naidu, Dani Rodrik, and Gabriel Zucman: Economics After Neoliberalism: "Economists of the real world... understand that we live in a second-best world rife with market imperfections and in which power matters enormously.... The competitive model is rarely the right benchmark.... This requires an empirical orientation, an experimental mind set, and a good dose of humility to recognize the limits of our knowledge.... Throughout [our] proposals is the sense that economies are operating well inside the justice-efficiency frontier, and that there are numerous policy 'free-lunches' that could push us towards an economy that is morally better without sacrificing (and indeed possibly enhancing) prosperity...

...Many of the essays share the theme of how power asymmetries shape our contemporary economy.... Who has the upper hand in bargaining for wages and employment; who has market power and who gets to compete; who can move across borders and who is stuck at home; who can evade taxation and who cannot; who gets to set the agenda of trade agreements and who is excluded; who can vote and who is effectively disenfranchised. Some of these asymmetries are traditional political imbalances; others are power imbalances that naturally occur in the market due to informational asymmetries or barriers to entry. Policies that counter such asymmetries make sense not only from a distributional standpoint but also for improving aggregate economic performance. The policy essays tackle these asymmetries frontally and suggest ways of rebalancing power for economic ends....

These essays (with more promised) are intended as first cuts, rather than definitive statements: we offer them as evidence that economics produces relevant and imaginative policy ideas and an encouragement to other economists to contribute in the same vein. They are a proof-of-concept for the claim that economics can help build a society that is both fairer and does more to live up to its productive potential—that economics can serve inclusive prosperity...


#noted

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