PUBPOL 723 - Wealth Inequality and Public Policy

Debate about inequality of economic resources has historically focused on differences in income or earnings. But wealth - the sum total of what people own minus all they owe - is a surely a better index of economic well being. Moreover, wealth inequality, irrespective of the dimension along which it is measured, dramatically exceeds income inequality. This course will do three main things. First, it will discuss evidence on the extent of wealth inequality. Differences in the level of overall wealth; differences in the propensity to hold wealth-increasing assets like housing and stocks; as well as differences in levels of debt will all be explored. Second, drawing from literature in economics, sociology, political science and history, alternative theoretical accounts of the reasons for wealth disparities will be discussed. The class critically assesses a series of public policy initiatives - the inheritance tax, affirmative action, reparations, F.H.A. loans, residential relocation schemes, to take a few examples - which have as their stated or implicit aim the reduction of wealth inequality or its level of persistence.