Termites of the State: Why Complexity Leads to Inequality

Description

In Termites of the State, renowned public economist Vito Tanzi presents a sweeping account of the industrialized world's economic development during the 20th century to today. In the tradition of grand economic histories, Tanzi connects the biggest issues of the modern world including extreme gaps in income distribution; increasing complexity of government actions and regulations; and asymmetry of access to information and to political influence between the elite and the rest of society. Part one covers the growth of state intervention since the early 20th century - a time before income taxes, central banks or social welfare programs. Part two investigates how and why laws and regulations have expanded in industrialized economies. Part three, building from this foundation, explains the forces behind the precipitous rise in global inequality. With a talent for clear, non-technical writing, Tanzi has produced an important book that will be of interest to any instructor, student, or general reader of economics and public policy. Part I. Changes in the Economic Role of the State in the 20th Century: 1. The age of Laissez Faire 2. The role of the state between the world wars 3. The coming of the welfare state 4. When economists thought they had found Nirvana: welfare policies 5. When economists thought they had found Nirvana: stabilization policies 6. Barbarians at the gates: challenges to Nirvana 7. General rules to guide governments 8. Giving more freedom to markets 9. A minimum economic role of the state? 10. Implications of excessive government withdrawal Part II. Complexity and the Rise of Termites: 11. The growth of termites 12. Termites in regulations 13. An inventory of policy tools 14. A closer look at regulations 15. Modernity and growing market termites 16. The allocation role in modern economies 17. Public goods and intellectual property 18. The state and its economic objectives and institutions 19. The state and the distribution of income 20. Market operations and income distribution 21. Poverty, inequality and government policy 22. Market manipulations and economic outcomes 23. Termites in the stabilization role 24. Modern government role and constitutional guidelines 25. The quality of the public sector and the legal framework 26. The quality of public institutions Part III. Equity and Inequality: 27. Wealth creation and government role 28. Recent concerns about inequality 29. How should governments intervene? 30. Intellectual property and income distribution 31. Historical background on intellectual property 32. Tax rates, tax structures and tax avoidance 33. Summing up of past developments 34. Why worry about income distribution? References Index.