Includes bibliographical references and index.

"The Returns to Power: A Political Theory of Economic Inequality argues that to understand why economic inequality in the United States is so high and is increasing, we must examine the policy choices made over the past four decades. Employing an unconventional comparative framework, the book shows how the market-oriented reforms in Russia and China after they dismantled their planned economic systems shed light on the causes and consequences of the recent surge of inequality in the US. The book also discusses post-World War II Germany, where the reconstruction of the war-oriented, centrally-controlled Nazi economy created a market system that provides widely shared prosperity, high growth, and robust democracy. The book details income and wealth inequality in the US across multiple dimensions. It explains why rent-seeking fuels a self-reinforcing alliance between wealthy economic interests and government. It shows how inequality contributes to political polarization and extremism, undermining democracy. Finally, it proposes a new conception of economic and political liberalism"--