The New History of Old Inequality

Abstract

Abstract Since the financial crisis of 2008 and the publication in 2014 of Thomas Piketty’s Capital in the Twenty-First Century, income and wealth inequality have returned to public and scholarly interest. Most subsequent discussion has focused on the fall and rise of inequality in the twentieth century, but meanwhile another body of economic history literature has reconstructed long-run inequality dynamics in early modern Europe. This article surveys the new history of old inequality and discusses its three principal findings: first, that between about 1300 and about 1900 inequality increased continuously almost everywhere, meaning there is no clear link between economic growth and inequality. Secondly, the only phenomena that substantially reduced inequality were unprecedented catastrophes. Thirdly, although few things have decreased inequality, many strategies of elite wealth defence have increased it, motivating new comparative concepts like the ‘inequality possibility frontier’ and the ‘extraction ratio’. Inequality will continue to be a subject of urgent political and moral attention, and this field opens up a research agenda that could bridge the methodological divide between economic history as practised by economists and by historians.