Is there a ‘new consensus’ on inequality?

Ferreira, Francisco H. G. ORCID: 0000-0001-8926-0500 (2025) Is there a ‘new consensus’ on inequality? In: Besley, Tim, Bucelli, Irene and Velasco, Andrés, (eds.) The London Consensus: Economic Principles for the 21st Century. LSE Press, London, UK, 313 - 350. ISBN 9781911712435

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Abstract

Thirty years after the Washington Consensus, is there a new policy consensus that addresses the problem of inequality? There is widespread acceptance that multiple, interrelated, and mutually reinforcing inequalities exist – in income, wealth, education, health, power, and recognition – and that these inequalities are generally ‘too high’. There has also been a significant shift towards a shared view that these inequalities matter, both intrinsically and because of their detrimental effects on economic efficiency and political institutions. There is much less consensus, perhaps surprisingly, on what the actual levels of income inequality are, and there are common misperceptions about their trends. In policy terms, there is something approaching a consensus regarding the desirability of various ‘pre-distribution’ policies, ranging from early childhood development to investment in better teaching. In certain quarters, there is also agreement that sharper antitrust regulation, freer labour unions, and more progressive taxation is needed in most countries. But much less is known about how to provide the poor with genuine opportunities to break the cycle of intergenerational transmission of disadvantage in a durable way.

Item Type:	Book Section
Additional Information:	© The Authors 2025
Divisions:	International Inequalities Institute
Subjects:	H Social Sciences > HC Economic History and Conditions H Social Sciences > HN Social history and conditions. Social problems. Social reform
Date Deposited:	22 Oct 2025 07:30
Last Modified:	23 Oct 2025 08:46
URI:	http://eprints.lse.ac.uk/id/eprint/129914

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