The Returns to Power: A Political Theory of Economic Inequality 9780197685952, 0197685951

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The Returns to Power

The Returns to Power A Political Theory of Economic Inequality

THOMAS F. REMINGTON

OXFORD UNIVERSITY PRESS

OXFORD UNIVERSITY PRESS

Oxford University Press is a department of the University of Oxford. It furthers the University's objective of excellence in research, scholarship, and education by publishing worldwide. Oxford is a registered trade mark of Oxford University Press in the UK and certain other countries. Published in the United States of America by Oxford University Press 198 Madison Avenue, New York, NY I 0016, United States of America. © Oxford University Press 2023 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, without the prior permission in writing of Oxford University Press, or as expressly permitted by law, by license, or under terms agreed with the appropriate reproduction rights organization. Inquiries concerning reproduction outside the scope of the above should be sent to the Rights Department, Oxford University Press, at the address above. You must not circulate this work in any other form and you must impose this same condition on any acquirer. Library of Congress Cataloging-in-Publication Data Names: Remington, Thomas F., 1948- author. Title: The returns to power : a political theory of economic inequality / Thomas F. Remington. Description: 1 Edition. I New York, NY : Oxford University Press, [ 2023] I Includes bibliographical references and index. Identifiers: LCCN 2022060546 (print) I LCCN 2022060547 (ebook) I ISBN 9780197685969 (paperback) I ISBN 9780197685952 (hardback) I ISBN 9780197685976 (epub) Subjects: LCSH: Income distribution-United States, I Equality-United States, I Equality-Russia (Federation) I Equality-China, I United States-Economic policy-21 century, I Russia (Federation)-Economic policy-21st century, I China-Economic policy-21 century, I Power (Social sciences)-Case studies. Classification: LCC HCll0.IS R46 2023 (print) I LCC HCl IO.IS (ebook) I DDC 339.2/2/0973-dc23/eng/20230202 LC record available at https://lccn.loc.gov/2022060546 LC ebook record available at https://lccn.loc.gov/2022060547 DOI: 10.1093/oso/9780197685952.001.0001 Paperback printed by Sheridan Books, Inc., United States of America Hardback printed by Bridgeport National Bindery, Inc., United States of America

CONTENTS

Acknowledgments

ix

1. The Threat to Democracy

1

2. Growing Apart: Trends in the Distribution of Income and Wealth 2.1. THE INTERPLAY OF POLITICS AND ECONOMICS 13 2.2. GRASPING INEQUALITY 17 2.3. DENYING, DEFENDING, AND DEFLECTING INEQUALITY 22 2.4. MEASURING INEQUALITY 34

2.4.1. The Gini Coefficient 34 2.4.2. Incomes at the Top 37 2.5. HIDDEN INCOMES 48 2.6. SPATIAL INEQUALITY 50

3. The Theory of Economic Rents

57

3.1. DEFINING RENTS 57 3.2. THOUGHT EXPERIMENTS 63 3.3. LIBERAL THEORY AND ECONOMIC RENTS 65 3.4. THE DEMISE OF ANTITRUST 71 3.5. BRINGING IN POLITICS 74 3.6. MEASURING THE SCALE OF RENTS IN THE ECONOMY 76 3.7. CONCLUSION 83

4. Rents and Market Reform

85

4.1. DEREGULATION, COMPETITION, AND CONCENTRATION 86 4.2. TAX CUTS 93

v

13

CONTENTS

vi

•U. RELAXATION OF A.:'>lTITRL'ST E:-;FORCB1E:-;T IOI •U. LABOR RIGIITS

JO.I

-1.!i. l'RIV:\TIZ:\TION OF SOCIAL PROTECTION I06 -1.6 MARKl,I' POWER IN 111':\LTIICARI' I 10 -1.7. CONCLL"SION I I� 5. The Union ofWealth and Power

119

S. I. DEMOCRACY AND POI.ITICAL EQL'AI.ITY 119 5.1.1. E.uly \.Vinners

1n

5.1.2. The Ascendancy of Corporate Power in the United States 5.1.3. The Rights of Corporations

111

5.2. l'RIV:\TIZ:\TION 01' l'l'BLIC GOODS 1-1