EPQ proposal
Proposal main topic: Political and social aspects of economics
Specific topic: How can political involvement in the economy impact social and
economic inequality?
Some points I will discuss:
- Income inequality as this is a part of economic inequality which directly
impacts social levels of equality. How can government policies reduce or
increase these inequalities?
- How policies influence social and economic inequality? What is kept in
mind when making policy decisions? Is the impact on inequality even a
deciding factor?
- How does corruption affect inequality? Does this have a domino effect on
the rest of the economy, worsening several other factors, such as
government finances?
Primary sources
The Effect of Direct Government Involvement in the Economy on the
Degree of Income Inequality: A Cross-National Study (a journal article
published by Steven Stack- Alma College)
https://www.jstor.org/stable/2094627?read-now=1#page_scan_tab_contents
I would start with this source as it discusses the direct relationship between the
rate of economic growth and the causal effect on inequality in society as a result.
This source allows me to explore the impacts of government intervention on
income inequality, supported by Keynesian theory of political economics, which
is a new and alternate addition from previous studies. The key thing about this
new addition of Keynes’ theory is that whilst other theories blame economic
growth for income and other inequalities, Keynes’ suggests that positive
externalities arising from economic growth counter inequality. Exploring two
drastically different sides of intervention will allow me to narrow down the
reasons for inequality in modern society.
A policy matrix for inclusive prosperity (a working paper published by
Dani Rodrik and Stefanie Stantcheva)
https://scholar.harvard.edu/files/stantcheva/files/policy_matrix_nber_w28736.pdf
This paper clearly states that politics and policies are indeed the best way to
combat inequality and even suggests that any gaps not filled in by the current
policy can be identified and corrected by another. It highlights the predominant
role of the government in countering the problem of inequality. It focuses on
issuing targeted policies and discusses what income group the policies should be
aimed at and at what stage would these policies be most effective in achieving
inclusive prosperity. This will allow me to further develop my understanding of
political intervention to correct inequality but also will present ways to
counteract the inequality thought to be caused by economic growth, as
previously suggested.
Corruption and Inequality (a research paper published by UNITED
NATIONS UNIVERSITY by Eric M Uslaner)
https://www.econstor.eu/bitstream/10419/63464/1/513090215.pdf
This source explores an alternative side of political involvement in the economy,
one which shows governments intervening for their own selfish gain. This leads
to the worsening of social and economic inequality, which further ripples through
the economy. I want to explore the domino effect here, of corrupt governments,
which this source is perfect for. It explores the complex connection of the quality
of government intervention and inequality, which demonstrates why some
societies are more corrupt than others. This will highlight the dark truths of
political involvement in some areas, showing another way political involvement
could increase inequality and leave the economy in shambles.
