Capitalisn't Why Economists Should Care About Inequality, with Branko Milanovic
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Nov 6, 2025 
Branko Milanovic, a renowned economist and expert on global income inequality, joins the conversation to unpack the critical intersections of capitalism, democracy, and inequality. He discusses why income inequality is a global concern and challenges the idea that capitalism is the sole driver of success, particularly in China. Milanovic argues that market solutions alone won't fix inequality; government intervention is crucial. He also explores how effective democracy requires diverse political voices and critiques the simplistic views on equality of opportunity versus equality of outcome.
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Why Inequality Undermines Growth
- Branko Milanovic argues inequality matters because high equality supports stronger economic growth within normal ranges.
- He rejects a strict trade-off where more equality necessarily reduces growth, saying moderate equality can boost growth.
Global Versus National Inequality
- Milanovic emphasizes global inequality differs from national inequality because nations can politically address domestic gaps.
- Global shifts reorder winners and losers and fuel political tensions when groups within countries lose relative standing.
The Elephant Chart Story
- Milanovic tells the origin of the 'elephant chart' showing who gained most during globalization and why it looks like an elephant.
- He notes the chart highlights Asian middle earners' large gains and stagnation among Western lower-middle groups.
