Wisdom on Inequality

From p. 145 of Arvind Panagariya’s 2019 book Free Trade and Prosperity: How Openness Helps the Developing Countries Grow Richer and Combat Poverty:

“[In] the developing countries, wisdom lies in attacking inequality through poverty alleviation rather than by focusing on inequality, which comes in many forms. Excessive preoccupation with inequality risks the adoption of policies that undermine wealth creation and hence poverty alleviation.”

Moreover, the arguments holds in all countries, not just developing ones. The poor are best served by tending to people, not ratios.

Comments are closed.