What Drives Wealth Inequality? with Lyn Alden - WBD467

Location: Remote
Date: Tuesday 22nd February
Project: lynalden.com
Role: Macroeconomist


Wealth inequality is as an emotive subject as any. At a minimum
it can divide societies, pitting citizens against each other. If
left to deteriorate and fester it can lead to populist uprisings.


Both sides of the political divide put forward causes and propose
solutions. And yet, despite the arguments being well worn, most
of the assumptions underpinning these opinions don’t stand up to
scrutiny.


Quantitative easing results in increased inequality - well, not
necessarily. Globalisation leads to a hollowing out of the
working class in developed nations - only in certain parts of the
world. Governments enable cronyism to exacerbate wealth
disparities - lobbying can constrain competition, but it is
unclear whether libertarianism would halt monopolistic practices.


Those vying to shape opinion would have us believe in binary
arguments. The problem, as ever, is that this subject is complex
with many dynamic variables. It isn’t a question of making
targeted policy interventions. A much more holistic and flexible
approach is required.


In this interview, I talk to macroeconomist and investment
strategist Lyn Alden. We discuss the multi-faceted drivers of
wealth inequality, the societal impacts of such disparities,
whether we’re on the cusp of another great depression, state-led
policies, and whether Bitcoin is a mitigation.