Video: Leaky buckets and inequality

Today’s video is on Okun’s leaky bucket – a metaphor that is used to describe how we would think about a trade-off between transfer resources and the total number of resources.

Such a metaphor for considering this trade-off is useful – but as Matt has noted in the past we should be very very cautious about overinterpreting this example when looking at real economic data. Hence why I got him to chat about that at the end.