The Public Sector
TU Wien Bibliothek
The Public Sector
TU Wien Bibliothek

Journal Article

Title Wealth inequality and power imbalances: shedding some heterodox light on a neglected topic
Author Rehm, Miriam & Schnetzer, Matthias
Published on 21 Nov 2016
Published by Technische Universität Wien
Published in Volume 42 • Issue 2 • 2016 , pages 53-58
Keywords (English) Wealth inequality, power, Piketty, Household Finance, Consumption Survey
AC AC11360606
DOI 10.34749/oes.2016.2300
URN urn:nbn:at:at-ubtuw:4-2300

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Abstract (English)

This paper argues that the cumulative causation processes between wealth and power risk leading to an escalation of wealth inequality. We confirm with new survey data for the Eurozone Pikettys conclusions that wealth is highly concentrated and that this inequality is perpetuated through dynastic wealth. This leads to an ever-concentrating ability to shape economic and political institutions. While neoclassical economics has a blind spot where power is concerned, we discuss how heterodox approaches have attempted to conceptualize this structural power which influences the framework of economic activity. Finally, we discuss three concrete channels through which the unequal distribution of private assets may affect power relations and economic activity

License

CC BY-NC 4.0 Creative Commons Attribution-NonCommercial 4.0