S1 E9: Taxation, Inequality, and Innovation with Stefanie Stantcheva from Harvard University
Mar 5, 2024
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Stefanie Stantcheva from Harvard University discusses taxation, incentives for inventors, wealth inequality in the US, zero-sum attitudes towards immigrants, and more with hosts Ruveyda Gozen and John Van Reenen.
Tax policies influence both the quantity and location of innovations, requiring targeted structures for promotion.
Historical wealth disparities, influenced by slavery, continue to impact wealth distribution and poverty in the US.
Deep dives
Understanding the Impact of Taxation on Innovation
Innovation, like other economic activities, responds to taxation, influencing the quantity and location of inventions. Research focusing on inventors in the US throughout the 20th century revealed that both personal and corporate taxes affect the number of innovations and inventors, with a stronger influence on where innovations occur rather than on their quality. Corporate and personal inventors respond differently to tax policies, emphasizing the need for targeted tax structures to promote innovation.
Wealth and Property Taxation in the 19th Century United States
The US historical context revealed the impact of wealth taxation, highlighting a drastic wealth accumulation change after the Civil War. Slavery was intricately linked to wealth, with enslaved individuals being counted as property pre-Civil War, affecting wealth distribution significantly post-war. The persistence of poverty in certain regions post-Civil War reflects the lasting effects of historical wealth disparities.
Zero-Sum Thinking in Policy and Attitude Formation
Understanding zero-sum thinking offers insights into policy preferences. Individuals with a zero-sum mindset tend to support redistribution policies, viewing advantages gained by certain groups as necessitating corrective interventions. This mindset varies across generations and family experiences, shaping individuals' perspectives on government interventions and equity concerns.
Challenges and Successes in Academia
Academic success often overshadows the constant challenges and rejections researchers face. Balancing research, teaching, and mentoring responsibilities remains a significant challenge, requiring efficient time management and dedication to fulfill academic duties effectively. Addressing inequalities in academia, such as disparities in opportunities based on background and identity, emerges as a crucial area for improvement.
In this episode, our guest is Stefanie Stantcheva and we talked about taxation, incentives for inventors, history, slavery and wealth accumulation, zero-sum attitude towards immigrants, and more!
Hosts: Ruveyda Gozen (@ruveyda_gozen) and John Van Reenen (@johnvanreenen)
08:30 Taxation and Innovations
13:30 Policy Implications of Taxes and Innovation Incentives
22:17 Historical Facts on Wealth Inequality in the US
28:08 Social Economics Lab: Attitudes towards Climate Change
38:15 Social Economics Lab: Zero-Sum Attitude, and Income Inequality
44:30 Cheezy Questions!
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