Visions of Inequality with Branko Milanovic

Mar 8, 2024

Branko Milanovic, a leading scholar on inequality and professor at the CUNY Graduate Center, dives into the complexities of income distribution influenced by historical figures like Adam Smith and Karl Marx. He reflects on his academic path starting in socialist Yugoslavia and the ideological hurdles in discussing inequality. The conversation explores the potential effects of AI on labor markets and emphasizes the need for capital redistribution. Milanovic also critiques the global elite's rise and discusses the intricate dynamics of globalization and national identity.

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ANECDOTE

Milanovic's Yugoslav Roots

Branko Milanovic became interested in income distribution studying in socialist Yugoslavia, a market socialist economy with income inequalities.
He was fascinated by linking statistical distributions to real social phenomena like income disparities and class structure.

INSIGHT

Reluctance to Debate Inequality

In socialist Yugoslavia, income inequality was not widely discussed as it conflicted with the ideology of classlessness.
Inequality existed, but was framed as fair due to differences in skill and contribution, limiting fundamental criticism of the system.

INSIGHT

Relevance of Classical Economists Today

Classical political economists like Smith, Ricardo, and Marx focused on class-based income distribution.
Their ideas remain relevant as class and elite income dynamics are resurging in modern economic inequality debates.

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In this episode, we sit down with economist and noted inequality researcher Branko Milanovic to discuss the influence of classical political economists like Adam Smith, Karl Marx, and David Ricardo, along with his latest book Visions of Inequality. He shares his formative experiences studying income distribution in socialist Yugoslavia, the ideological reluctance to discuss income inequality, the relevance of classical political economists in understanding income distribution today (particularly in relation to the return of class), and the challenges of speculating on future developments such as AI and the politics of global elites. Our conversation concludes with a discussion on Adam Smith's perspective on globalisation and the future developments and geopolitical competition that may shape the world.

Takeaways:

Classical political economists like Adam Smith, Karl Marx, and David Ricardo are relevant in understanding income distribution today, particularly in relation to the return of class and the elite.
Speculating on future developments in income distribution is challenging, but studying the historical evolution of economic thought can provide insights into how our perception of inequality may be shaped by future circumstances.
Artificial intelligence has the potential to significantly impact inequality and the income distribution, particularly by displacing skilled workers and increasing the share of capital.
Broadening the ownership of capital and redistributing wealth can help address the increasing income inequality caused by artificial intelligence.
The emergence of a global elite raises new questions for social scientists, such as the implications for international relations, democracy, corruption, and taxation.
Adam Smith's writings provide insights into the potential benefits and challenges of globalisation, including the importance of prosperity and technological development in promoting peace.

Adam Smith's Panmure House:

⁠https://panmurehouse.org/⁠

Podcast in DC:

⁠https://panmurehouse.org/perspectives/podcasts/panmure-house-at-the-british-embassy-washington-dc/⁠

Buy Branko's book:

⁠https://www.hup.harvard.edu/books/9780674264144⁠

⁠https://www.panmurehouse.org/shop/merchandise/visions-of-inequality-by-branko-milanovic/