INCOME INEQUALITY AND THE NEED FOR NEO-PUBLIC INTERVENTIONISM: COMPARISON OF U.S. AND EUROPE

Year 2020, Volume: 11 Issue: 21, 387 - 409, 30.06.2020

Zeki Akbakay , Ersin Erkan

https://doi.org/10.36543/kauiibfd.2020.018

Cited By: 3

Abstract

Historical data
show that income inequality has been steadily increasing since the 1980s. In
fact, income inequality has reached the level of the early 20th century in many
countries, especially in the USA. The main reason for this trend is the
neo-liberal understanding. With neo-liberal policies, the economic sphere has
distanced itself from the public/political sphere and intervention, and has
gained so-called autonomy. On the other hand, the increase in income
inequality, which is universal, appears in different forms and levels in the
USA and Europe. The basis of this differentiation lies in the role of the state
in economic and social life. Despite all contradictory discourses, facts and
statistics indicate that the state is still an important tool in reducing
income inequality. When the income inequality of the European countries and the
USA are compared, the importance and necessity of the social state becomes
concrete.

Keywords

Income Inequality, Role of State, Public Policies

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