SC Connecticut News

Rick Harrison reports on the ongoing debate over tax-and-spend policies aimed at reducing economic inequality. Critics argue these policies are an unfair redistribution of wealth, while proponents see them as necessary to support marginalized communities.

Steven Vogel, director of the Political Economy Program at the University of California, Berkeley, supports redistribution but also advocates for "predistribution," a concept championed by Jacob S. Hacker from Yale. Predistribution aims to tackle economic inequality's root causes rather than its symptoms.

Vogel argues that predistribution respects human dignity more than government aid because it emphasizes fair wages and value. He states, “One argument against redistribution is that it can reinforce a status hierarchy that can demean the recipients, making them feel like helpless victims of the market system.”

Hacker invited Vogel to discuss his paper on predistributive policies at Yale’s Institution for Social and Policy Studies (ISPS). The event was part of the American Political Economy eXchange (APEX), directed by Hacker and supported by the Hewlett Foundation.

“At APEX, we seek a deeper understanding of how markets and government interact in our democracy,” said Hacker. “Nothing gets at the heart of this dynamic more than how we address economic inequality and insecurity."

Vogel suggests that improving education, enforcing fair labor practices, and regulating markets could create a sustainable level playing field. He points out that market rules reflect power balances among economic actors: “Predistribution strives to create more just institutions, not just to fix the rules.”

He also mentions that investing in education and job training programs can equip individuals with necessary skills for employment. Protecting workers’ rights and raising minimum wages can directly increase household incomes. Enforcing antitrust laws ensures competitive markets which foster innovation and lower prices.

“Predistribution may be more politically feasible because it can be less costly and more effective than redistribution,” Vogel stated.

Despite acknowledging resistance from powerful interests benefiting from current systems, Vogel calls for both predistribution and redistribution strategies. He highlights President Franklin Roosevelt’s New Deal as an example where public works investments led to economic reforms.

Vogel concludes by urging reforms in market governance to balance economic power with political influence: “Social behavior doesn’t change that easily... Focusing only on redistribution sets the bar too low.”