Richard Murphy @RichardJMurphy
When an economic theory encourages policy that increases inequality then it’s the duty of those committed to justice to say it’s wrong
The economic theory could be inconvenient, an undesirable outcome of the way our universe works, many things, but it won’t be incorrect just because it increases inequality. That would be policy based evidence making.
For example, it’s well known that the industrial revolution massively increased global inequality. It’s sometimes called the Great Divergence. That doesn’t mean that the industrial revolution was wrong in either the sense of being incorrect or immoral.
At most we might say that the increased inequality was an undesirable side effect of a very desirable thing: people finally moving to three squares and a change of clothes instead of Malthusian destitution.
China’s development in the last 30 years has massively increased inequality within that country. Should they have stayed Maoist to avoid that dreadful fate?