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    M Tamta Bibiluri Critique Tamta Bibiluri A 858-1-1

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    Sarkhan Hashimov
    Tilly argues that economic inequality hinders economic growth, challenging the conservative view that inequality promotes growth. He claims policies that promote equality, such as a strong rule of law and equal access to education, actually spur growth. However, the critique finds Tilly's evidence and arguments lacking, as he relies on few sources and ignores counterarguments. While Tilly aims to increase awareness, his biased language and radical claims weaken his analysis. The critique concludes the article would be more valuable if it focused more on solutions than attacks.

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    M Tamta Bibiluri Critique Tamta Bibiluri A 858-1-1

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    Sarkhan Hashimov
    106 views3 pages
    Tilly argues that economic inequality hinders economic growth, challenging the conservative view that inequality promotes growth. He claims policies that promote equality, such as a strong rule of law and equal access to education, actually spur growth. However, the critique finds Tilly's evidence and arguments lacking, as he relies on few sources and ignores counterarguments. While Tilly aims to increase awareness, his biased language and radical claims weaken his analysis. The critique concludes the article would be more valuable if it focused more on solutions than attacks.

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    M Tamta Bibiluri Critique Tamta Bibiluri a 858-1-1

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    Tilly argues that economic inequality hinders economic growth, challenging the conservative view that inequality promotes growth. He claims policies that promote equality, such as a strong rule of law and equal access to education, actually spur growth. However, the critique finds Tilly's evidence and arguments lacking, as he relies on few sources and ignores counterarguments. While Tilly aims to increase awareness, his biased language and radical claims weaken his analysis. The critique concludes the article would be more valuable if it focused more on solutions than attacks.

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    106 views3 pages

    M Tamta Bibiluri Critique Tamta Bibiluri A 858-1-1

    Uploaded by

    Sarkhan Hashimov
    Tilly argues that economic inequality hinders economic growth, challenging the conservative view that inequality promotes growth. He claims policies that promote equality, such as a strong rule of law and equal access to education, actually spur growth. However, the critique finds Tilly's evidence and arguments lacking, as he relies on few sources and ignores counterarguments. While Tilly aims to increase awareness, his biased language and radical claims weaken his analysis. The critique concludes the article would be more valuable if it focused more on solutions than attacks.

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    Chris Tilly Why Inequality is Bad for the Economy: Geese, Golden Eggs, and

    Traps
    Wealth Inequality Reader, 2004

    Chris Tilly is a professor of Urban Planning and Director of the Institute for
    Research on Labour and Employment at UCLA. He teaches courses on
    economic development and research methods. In his article Why Inequality is
    Bad for the Economy: Geese, Golden Eggs, and Traps (2004) Tilly challenges
    conservatives prescription that economic inequality is essential for growth and
    tries to show how equality can promote growth while inequality hinders it. The
    article flows smoothly, the focus is obvious and maintained, however, the
    number of sources is not sufficient and no statistical data is provided. Also, the
    article covers only left perspectives on economic affairs and creates an
    atmosphere that it does not serve to find the truth but is the propaganda
    against conservatives.
    In the first part of his article Inequality: Goose or Goose-Killer? Tilly
    describes conservatives two main arguments that economic inequality is
    essential for economic growth as it generates the financial incentives for
    individuals to work hard, innovate, and invest wisely all of which will result in
    economic growth and even the poor people will benefit indirectly from
    economic inequality as some of the benefits of faster economic growth trickle
    down to them. Then he criticizes the well-worn trickle-down theory by using
    Keynesian justification that much individual savings can be harmful as it leads
    to less investment (paradox of thrift). Author considers so called incentives
    argument a little weightier but tries to eliminate it and suggests economists
    William Easterlys and Gary Fields summarized evidence in favour of equality:
    more ethnically homogeneous countries and countries with equal incomes and
    land distribution grow faster. To strengthen his opinion Tilly focuses on match
    effects (for instance, well-educated people are more productive when they
    collaborate with ones who are also qualified) which is less likely attainable in
    very unequal society. Also, he says that often called closing off the low road
    policies create Pressure effects and final result of it is economic growth as it
    makes business owners to be more productive to remain profitable. Author
    also states that growth itself does not promote equality (as conservatives
    claim) but only in case when policies and institutions to support equality are in
    place. Tilly tries to show links among inequality, conflict and growth. He says
    that ethnic variety is connected to slower growth and suggests solution which
    is not ethnic cleansing but diminishing ethnic inequalities by using the tools
    of government such as strong rule of law, professional bureaucracies,

    protection of contracts, and freedom from expropriation. Finally, he concludes


    that being in inequality trap and following with wrong economic policies leads
    country towards slower growth and stagnation and everyone is going to pay
    the price.

    Tilly discusses one of the main and highly controversial issues in


    economics and attempts to increase public awareness about the
    danger associated with inequality and persuade policymakers to take an action.
    But his arguments are not sufficiently convincing and evidence-based as he
    relies on limited number of research (mostly on Easterlys). Also he uses vague
    language (study after study has shown) and insufficient statistical data is
    suggested to make conclusion (for example, when he talks about correlation
    between ethnical diversity and slow growth). But the most important is that
    author covers only positive sides of policies he suggests. For instance, when he
    says that pressure effects created by closing off the low road policies
    promotes growth, ignores the fact that the great majority of economists
    criticize these policies as they increase unemployment among the young and
    unskilled. The Nobel-prize winning economist Paul Krugman wrote in 1998:
    So what are the effects of increasing minimum wages? Any Econ 101
    student can tell you the answer: The higher wage reduces the quantity of
    labor demanded, and hence leads to unemployment. (Washington
    Monthly, Sep 1, 1998, book review).1
    Thus, pressure effects argument might be considered as weakness of the
    article, especially when the claim is radical (conservative prescriptions are
    absolutely, dangerously wrong says Tilly).
    Every author has an opinion about the content he writes and shows his bias
    toward the subject, but Tillys approach about trickle-down theory has little
    intellectual foundation and seems like so called "mudslinging", because
    whether trickle-down theory exists and it belongs to conservatives is
    questionable.
    Thomas
    Sowell,
    an
    American economist
    and political
    philosopher , in his book Basic Economics: A Common Sense Guide to the
    Economy, wrote:
    The phrase trickle down often comes up in discussions of tax
    policies . . . But no recognized economist of any school of thought has
    ever had any such theory or made any such proposal. It is a straw man. It
    1

    Krugman, Paul. Living Wage: What It Is and Why We Need It. The Free Library (01 September 1998)
    http://www.thefreelibrary.com/Living Wage: What It Is and Why We Need It.-a021103427

    cannot be found in even the most voluminous and learned histories of


    economic theories.( p. 213)2
    In addition to that, Tilly uses phrases such as the advocates of unfettered
    capitalism and if you dont buy this incentive story, which emphasize the
    opinion that the article is propaganda against conservatives.
    To conclude, radical claim accompanied with poor examples and biased
    attitude overshadows the work. If the author had been more concentrated on
    solving the problem rather than attacking his opponents, the article would be
    more valuable.

    Works Cited
    Krugman, Paul. Living Wage: What It Is and Why We Need It.( Washington Monthly, book
    review , 01 September 1998)
    Sowell, Thomas. Basic Economics: A Common Sense Guide to the Economy4th edition (28
    December 2010)

    14.5 A good and forceful critique. Keep up the good work.

    2 Sowell, Thomas. Basic Economics: A Common Sense Guide to the Economy4th edition (28 December

    2010)

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