Summary Of Inequality What Can Be Done By Anthony B Atkinson

The unsolved issue of inequality is still at the forefront of public debate. In Inequality, What Can be Done? by Anthony B. Atkinson, Atkinson sets out proposals that will bring about a shift in the distribution of income towards less inequality. Atkinson seeks to show what can be done now to reduce the extent of inequality. The world faces great problem, but the future is very much in our control. It has been commonly addressed that the improvement of education and skills is the solution to inequality however, we must rethink fundamental aspects in our society such as capital sharing, progressive taxation, as well as employment and pay in the future to limit economic and social inequality.
Atkinson devotes much of his time towards the research

To reduce inequality, we must go beyond placing new taxes on the wealthy to fund existing programs. We need new ideas. Atkinson presents his new set of policies in five areas: technology, employment, social security, the sharing of capital, and taxation. He defends these against the common arguments and excuses for inaction: that intervention will shrink the economy, that globalization makes action impossible, and that new policies cannot be afforded. “Proposal 1: The government should offer via national savings bonds a guaranteed positive real rate of interest on savings, with a maximum holding per person” (Atkinson 168). The rate can be taken in correspondence to the medium-term expected rate of real growth of household income per head (averaged to smooth out cyclical fluctuations), allowing for the fact that household incomes cannot be expected to grow as fast as national income. If the real rate of interest for small savers can be guaranteed to match the rate of growth, then their savings will not fall behind, “Proposal 2: There should be a capital endowment (minimal inheritance) paid to all at adulthood” (Atkinson 170). The age these individuals

Adding restrictions for the use of the minimum inheritance would add significantly to the administrative cost. One restriction is towards the investment in education or training. Possible permitted uses could include down payments on houses or flats, or the establishment of a small business, “Proposal 3: A public Investment Authority should be created, operating a sovereign wealth fund with the aim of building up the net worth of the state by holding investments in companies and in property” (Atkinson 175). A sovereign wealth fund is a state-owned investment fund. Sovereign wealth funds are used by many nations to generate profit that will benefit the nation’s economy as well as its citizens. Its primary function is to stabilize the nation’s economy through diversification and to generate wealth for future generations. One of the most recent sovereign wealth funds was established in France in 2008, Le Fonds stratégique d’investissement (Structural Investment Fund). It forms part of a longer history: the fund comes under the jurisdiction of the Caisse des Dépôts that was founded in 1816. The fund is answerable to Parliament and is a long-term investor in the service of the public interest. The