The book delves into this discussion by analysing fiscal policy and its link with inequality. Fiscal policy is the government's most powerful tool for addressing inequality. It affects households' consumption directly (through taxes and transfers) and indirectly (via incentives for work and production and the provision of public goods and individual services such as education and health).
An important message of the book is that growth and equity are not necessarily at odds; with the appropriate mix of policy instruments and careful policy design, countries can achieve better distributional outcomes and improve economic efficiency.